Mall management Process Overview
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Mall management involves leasing space to tenants, maintaining facilities, and promoting the mall. The key functions of mall management include leasing space to prospective tenants through screening and negotiations; issuing offer letters detailing payment terms; facilitating tenant infrastructure setup; managing finances and contracts; handling requests for additional services, renovations, or contract amendments; and promoting the mall. Effective mall management ensures the right tenant mix, maintains facilities, and maximizes rental income to meet business objectives.
Mall management Process Overview
- 2. WHAT IS MALL MANAGEMENT ? Mall management has been identified as a critical factor for the success of malls and the retail industry across the world. Mall management broadly includes mall positioning, zoning, tenant mix, promotions/ marketing and facility/finance management.
- 3. MAIN FUNCTIONALITY 1 3 5 7 2 4 6 8 Leasing Process / Prospect Management Offer Letter with Payment Terms & Conditions Tenant Infrastructure Setup Request Financial Management Additional Service Request Renovation/Remodeli ng Request Contract Renewal Other Services
- 4. LEASING PROCESS / PROSPECT MANAGEMENT • Develop leasing plan to identify new clients and negotiate with prospective tenants to maximize income in line with the business plan. • Processes should ensure proper tenant mix in the property in line with business strategy and market demand to achieve desired company business objective. • Leasing team will manage to capture the prospect by screening them on decisive aspects: What business they are in Product they are selling Price of the product Locations of the stores Market Reputation Turn over
- 5. LEASING PROCESS / PROSPECT MANAGEMENT (CONTINUE…) • Screening Parameters Checked: What prospective tenant can offer to the mall Does the prospective tenant match the mall vision / class? Make sure prospective tenant’s products do not pose a threat to our existing tenant Location / unit offered to the prospective tenant follows the zoning of mall
- 6. DISPATCHING OFFER LETTER WITH PAYMENT TERMS & CONDITIONS • Set Leasing Terms • Dispatch offer letters to shortlisted prospects • Choosing Tenant: After personal negotiation, one tenant will be selected from shortlisted prospects after reviewing their response to offer letters • Set terms of payment Down payment 20% should be paid by date.. Reminder 80% is paid monthly for __ months. • Set estimated opening date based on acceptance and awarding final Offer Letter to Tenant • Final Offer Award as Tenant with signoff.
- 7. TENANT INFRASTRUCTURE SETUP REQUEST • After approval and acceptance of offer, Tenant will send infrastructural setup request that contains Designing Details (MEP Design, HVAC Design, Architecture for Fit-out Planning, Fire Safety Design/Plan). • Verify and Validation of Request: Infrastructure development team verify and validate the request and initiate process after checking completeness adhere to infrastructure property norms.Probability & Accountabilit y Approvals Compliance Project Delivery Strategy Best Practice Opportunities Fit-out Project Brief Fit-out Project Program Design & Documentat ion Tendering & Constructio n Optimal Fit-out Outcomes
- 8. TENANT INFRASTRUCTURE SETUP REQUEST (CONTINUE…) • Change Request: Infrastructure set-up team will also validate the implementation setup cost and match with initial costing and charge change request based on requirement basis (if required). • Unite Handover: On infrastructure setup completion, property unit handover/possession will be given to tenant.
- 9. FINANCIAL MANAGEMENT • Financial team will be touch upon Procedural Parts and contacting with Leasing Team, Intrastromal Team to make Leasing contract/agreement with tenant. • Leasing contract/agreement preparation will contain following: Right and Responsibility of Tenant and/or Owner/ Landlord Lease duration and option to renew Permitted usage – It includes a clause that outlines the permitted use of the premises. Tenancy mix and competition – It consider the mix of tenants in a shopping center or precinct. Ideally the mix of businesses should complement rather than compete with your business. Costs – It Other costs associated with leasing commercial premises also need to be considered in your negotiations. (operating expenses or outgoings,
- 10. FINANCIAL MANAGEMENT (CONTINUE…) Repair and maintenance clause - Responsibility for repairs and maintenance should be clearly outlined in your lease (i.e. roof, walls, air-conditioner, exterior fittings such as gutters and downpipes, plant and equipment that are their property, etc..) Assignment and sub-leasing – It will contains the clause regarding assigning sub-leasing party. In case party sell your business or can no longer keep operating. Here, one may need the landlord’s permission. Default and Breaches – It will be terms and conditions against breach of fulfillment of payment terms and actions against them. Redevelopment and Relocation clause Contract Initiation, Termination & Revision Clause • Change request and its responsibility matrix gives key insight over further
- 11. FINANCIAL MANAGEMENT (CONTINUE…) • Leasing contract changes/ revision. Redevelopment ,Relocation Revision Contract clause - Redevelopment clause may allow the landlord to terminate a lease early so they can carry out major works to renovate or redevelop the premises. In these circumstances you could find yourself without premises or relocated to alternative premises. Contract Initiation, Termination - It will include contract terms in stage of initiation , termination. • Change request and its responsibility matrix gives key insight over further responsibilities of future changes
- 12. ADDITIONAL SERVICE REQUEST • After possession/handover of the property unit, any changes will be covered under Additional Service Change Request. This can be bifurcated into major/minor change request. • This change request, management will compare contracts terms and condition, type of change request and aligned required work measurement, its impact will be measured by finance and Infrastructure management team. • This process will verify and validate request by infrastructure management request. • Major Change Request - Depending on required amount of work and/or lease duration this will fall under this category. It will have its own financial and infrastructural impact. • Minor Change Request - This can be raised considered when amount of work
- 13. RENOVATION/REMODELING REQUEST • This service request can be raised based on contractual terms and condition and/or forced by tenant in case of process to improving a broken, damaged, or outdated structure.. • Renovation request will be verified by the appointed team and after verification it will be accepted and/or rejected based on the acclaimed justifiable condition. • Alteration includes, but is not limited to, all minor construction; changes in facilities configuration; fabrication, modification, removal, or installation of hardware and equipment; signs; erection, relocation, or removal of partitions, doors, and windows; and changes in type of finishes and flooring materials. • Renovation applies to that work which is required to restore, upgrade, or otherwise improve the general condition of facilities.
- 14. RENOVATION/REMODELING REQUEST (CONTINUE…) • Maintenance or Repair includes all work necessary for the general upkeep of existing facilities, facility components, grounds, and utility systems. • Structural/physical changes to interior space is defined as demolition or new construction that includes: installation of fixed equipment or furniture requiring utility, electrical, laboratory exhaust or HVAC connections; fire alarms and fire suppression systems; taps into building utilities or HVAC systems; plumbing; involvement of any hazardous materials or life safety issues such as propane, natural gas, chemicals, fumes, ventilation issues • After approval, Contract information will measure its gives its financial impact. • Depending on renovation requester, financial impacts will have its own consideration and its impact will be on overall contract and factors like: Property age, New infrastructure setup cost, Evaluation of existing setup condition. (w.r.t.
- 15. CONTRACT MANAGEMENT/AMENDMENTS When things change with your lease agreement, and both the tenant and landlord agree on the change, creating a Lease Amendment is a great way to modify the terms of the original lease without having to overhaul the whole thing. Whether you're a landlord or a tenant, a Lease Amendment helps you move forward with your lease and with your life. Lease Amendment Requirement: 1. You're a landlord who wants to make specific changes to an existing lease. 2. You're a tenant and you would like to propose certain lease changes to your landlord. 3. You and your tenant have discussed changes to your current lease, and you'd like to formalize the agreement. 4. You and your landlord have agreed on changing certain terms in your lease, and you'd like a written record of these changes. Financial team will validate amendments and includes those in revised contract agreement with its financial impacts based on mutual agreement.
- 16. GLOSSARY • MEP Design – Mechanical Electrical and Plumbing Design • Fit-out Design – It contains Shell and Core work generally comprise structure, cladding, base plant, completed common areas and external works. • HVAC - Heating, ventilation, and air conditioning (HVAC) design