A mall renovation is a frequent and planned event to keep tenants happy, customers coming back and the property looking good. This supports the rent so that the property can compete with other properties in the local area. Failure to renovate or remodel puts you on the path to poor property performance and rentals; this can happen too quickly. Tenants and rentals are a fundamental part of the real estate strategy.

Renovation plans should incorporate your primary tenants, specialty tenant mix, owner investment plans, and community needs. It’s a good balance. Pay due attention to the terms of all property leases before you begin, as some may have clauses that will affect the planning or staging of the project. Local property legislation related to retail property may also have permits and procedures for the renovation or demolition of properties.

So renovation becomes part of the retail property’s business plan and you need to know what you’re doing before you start; delivery time can be months if not years. Minor renovation is something that happens in one form or another every 5 years or so in a commercial property, with major renovations happening on average every 8-10 years.

Real estate rehabilitation is a strategy that needs careful planning when it comes to shopping centers. The property must not be renovated during the peak buying times of the year, and the renovation must adhere to a strict schedule and results. The builder or developer you use for the project is the first critical decision you’ll make; they must provide evidence of other renovation projects on similar high-impact commercial properties. They should be able to tell you exactly how they handled critical day-to-day issues on the property, like noise, dust, storage, lighting, foot traffic, and tenant relations; they must show how they completed other similar complex retail projects on time and within budget.

Turn your property renovation into a community event and build excitement around you. Make big statements about the renovation before and during the process so the community knows what’s going on and has an air of anticipation with the outcome.

Get the community involved in the future of the property by conducting needs and concerns surveys. The survey results can be integrated into the project if warranted and will lead to better community engagement with the final release of the property.

Informational signs should be placed on all security barriers and renovation fences around the property clearly informing the community of what is happening. The more they know about what you’re doing, the more likely they are to come back when jobs are done. The buyer’s tolerance is what he needs from the beginning.

Always keep tenants informed of the stages and progress of the reform. It is your income and business that are affected. They want your renovation to be successful so that your business can be successful. Communication links in a shopping center renovation are critical to the process and the outcome.

As the completion of the mall renovation nears, a mall should hold a series of community events and special business days organized over a period of 2-3 months. It can start with a major two-month coordinated reopening campaign. It should be multiple and broad to attract as many buyers as possible. The local area community needs to get involved and visit the property to see exactly what all the changes are and to see what the property now offers. Build a degree of anticipation in as many media outlets as possible as you move toward completion of the renovation.

Local service groups and sports organizations are likely to jump on the opportunity to have space in the mall to raise money and raise their profile. This can be integrated into the busiest shopping days of the week.

The promotional campaign at the end of the reform of a shopping center must have key objectives such as:

• Create a new identity for the mall in the retail and business community as a viable hub that offers new shopping options tailored to the needs of the community.
• Give the property a name that means something positive to local buyers. When in doubt, create a competition for buyers as part of the process.
• Create a program to increase awareness and use of new tenants (movie theaters, an anchor, and a sandwich shop) through the participation of as many tenants as possible.
• Provide valuable community services to area children and families in ways that strengthen community bonds and interaction.
• Connect with the Chamber of Commerce, Rotary, Local Hospital, Jaycees, Police and Fire Departments, Rescue Organizations and the media. Offer them ways to interact with your shoppers on busy shopping days, but ask them for some benefit in return.
• Improve clients’ perceptions of the property by introducing them to new tenants and services that are new to the property.
• Promote all new attractive and convenient shopping in the center. Show your clients how easy the property is to visit and use.
• Update all common areas and amenities so the buyer feels and experiences the real benefit of the property improvement.
• Provide a mechanism that stimulates purchases between tenants, increasing customer awareness of new and existing tenants.
• Establish relationships with the media to generate free publicity whenever possible as the renovation progresses.
• Provide press clippings and collateral materials that would support leasing efforts as you seek to fill remaining or upcoming vacant areas.