Firstly, management teams must get the basics right. It's obvious stuff, but make sure your property records are correct and updated quickly, that the service charge has been audited on time, current expenditure is not higher than the agreed budget, and tenant queries are resolved swiftly with strong credit control. Tenants will expect unnecessary expenditure to be deferred where possible, with tight cost control, and will want to be notified when this is unavoidable. Landlords' non-recoverable costs should be reviewed and minimised as far as possible.

It's important to have an asset strategy in place, to know your centre and to undertake research. With the increased emphasis on revenue generation, management teams need to focus on commercialisation initiatives. For example, the introduction of RMUs, kiosks, or advertising in the mall not only creates a point of difference but an income stream to the landlord. Tariff rates and banding for car parks should be regularly reviewed to ensure that the correct balance between value to the shopper and maximisation of income generation.

The FM marketplace is also changing, with a feeling that centres have not been managed to their full potential in the past, creating a need to deliver higher quality services at a more competitive cost. There are various offers available, with perhaps the most favourable where an income is derived for the landlord which can be capitalised, as well as achieving economies of scale for the retailers.

Expect to see management teams working hard over the coming months!

Don Lemen,

Director, DTZ

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