EFFECTIVE RETAIL LEASE MANAGEMENT - CASE STUDIES OF BUGIS JUNCTION AND RAFFLES CITY SHOPPING CENTRE

Abstract

Downtown shopping centres need to be constantly renewed and upgraded so as to meet the rapid changing needs of the consumers and the tenants. As more new supply of retail spaces are coming up in the suburban area, effective lease management plays a more significant role in the downtown shopping centres. This study attempts to look into the factors contributing to effective lease management - the development and implementation of an effective leasing plan; the building's location and its design and features, the understanding of the market; and market conditions. Two downtown shopping centres ? Bugis Junction and Raffles City were used to elaborate on the development of leasing plans. Surveys of the tenants in both centres were conducted to evaluate on the extent to which the location of the centres, its design and other factors have contributed to their success. The results showed that a majority of the respondents (about 70%) were attracted by the centres' excellent location. From the tenants' surveys, the importance of some criteria were also analyzed. More than 50% of the respondents in Bugis Junction stated the exact location of store and pedestrian flow as 'very important' criteria. As for Raffles City, criteria considered to be very important by a high percentage of the respondents includes exact location of store, availability of public transport as well as pedestrian flow. The excellent location of the two shopping centres could be one factor determining their success in leasing. Nevertheless to be effective in leasing of retail space when the retail market is weak, the respective centre's design and features as well as the management's understanding of the tenants' needs and requirements will contribute considerably to the development of an effective leasing plan.