Landlord asset managers look for ways to increase revenue as retail occupancy exceeds 96%
/With retail occupancy roving around 96%, asset managers face a major challenge that defies their mandate: continually growing rental income on what is essentially a fully occupied and stabilized property. Increasingly, they are turning to alternative uses and non-traditional on-site methods to grow ancillary income that differ from a property's primary purpose (rent growth from long-term leases of leasable space). Some examples:
- RioCan Real Estate Investment Trust launched the Spacewise Next Generation Property Marketing Portal, which categorizes and catalogues just about every possible way a landlord can promote opportunities for brands and other businesses, according to RioCan's John McKinnon and Meredith Vlitas, MES.
- DLC Management Corp. is leasing the roof space to Radial Power LLC for solar installations at open-air centers for lucrative rents aided by federal, state and local incentives, according to DLC's Chris Ressa.
- Electrify America seeks 10-year leases with options for parking lot EV chargers that not only bring income to landlords but also generate retail sales for the center's stores and restaurants, according to Electrify America's Brandy Mathie.