THE IMPACT OF TENANT-LANDLORD RELATIONSHIPS ON THE SUCCESS OF SHOPPING MALLS

Abstract

One of the problems faced in the retail industry is the high retail turnover rate and this could be partially due to the lack of a good foundation for tenant-landlord relations. This dissertation would address tenant-landlord relationships and examine its role and impact in a securitized and unsecuritized mall. This paper will argue that tenant-landlord relations are important for at least three reasons: (1) there would be more synergy and transparency between landlord and tenant (2) good relations will instill loyalty in the retailer to continue staying in the mall; (3) this will value add to the success of the mall. The results of a survey on 250 retailers in 36 shopping malls in Singapore affirm that landlords generally do not focus on tenant-landlord relations with their retailer. There is also a distinct disparity in landlord management between securitized and unsecuritized malls. Tenants surveyed have indicated that securitized mall landlords have been more active in keeping tenant-landlord relations than unsecuritized malls. Tenants have also ranked securitized landlords as being most trustworthy but both forms of landlord management are sorely lacking in taking the initiative to address their tenants' needs. Many retailers have also indicated in the survey that there needs to be more pro-activeness and understanding from the landlords.