Recipe for good commercialisation
A recipe for good commercialisation of a commercial facility is as complex as a recipe for a good dish. However, the recipe and the skills of Jamie Olivier or Robert Makłowicz are not all that you need! In the case of commercialisation, all factors must harmonise properly in a process lasting even several years.
In the following post, we will explain how commercialisation, i.e. renting a commercial space, works. This is one of the services provided by Higasa Properties. We have our own premises in the retail parks built by us, and we also mediate in rental on behalf of external entities.
Location, location, location
The key aspect of renting space is the location of the facility. The commercial success of the venture depends on it. In the case of our facilities, built under the Higasa Park brand, we conduct a careful analysis of the potential location.
“Before the land for the investment is purchased, we conduct car and pedestrian traffic surveys lasting up to several months. We also check demographic and economic data as well as the commercial situation in the selected locality. Only with such information, we are able to direct a question to retail chains, probing their interest. Of course, having good contacts, we know the requirements of individual tenants in advance, so we search for locations based on such guidelines,” explains Marcin Rudziński, a member of the board of Higasa Properties.
It is worth noting that the period needed from finding a plot of land, including the analysis, purchase process, design, and then construction and commercialisation, to opening a retail park, usually takes about 2 years.
How does it work in practice?
One of the good examples of a great location is Higasa Park Łęczna. The town of Łęczna, in Lubelskie Voivodeship, is characterised by good demographic factors. The plot with the retail park is located literally in the centre of the town, right next to the main roundabout, and large housing estates located nearby. Hence the interest of retail chains such as KiK, CCC, EURO RTV AGD, and Żabka. Local businesses are also among the tenants.
We also follow similar guidelines when conducting external, commissioned commercialisation. Naturally, the process looks a bit different when we are approached by a company or an individual who has already purchased premises/land. Here, we most often start our work with the service of a thorough examination of the potential of the location. Its result gives an answer to the question of whether a given facility can be successfully commercialised at all.
“We also cooperate with clients who are only considering purchasing land for services or commercial premises. At this stage, we can warn the client that the given investment may not have a chance of success, if that is the case. Such a situation has recently taken place in one of the towns near Warsaw. Currently, the commercial saturation there is so high that it did not make sense to open another commercial object. Despite the fact that the plot is located at the main junction. Of course, the decision is preceded by a full analysis, including a tour of the town and checking “live” the commercial situation and where the residents’ favourite shopping venues are located,” emphasises Marcin Rudziński.
So, what is successful commercialisation?
In our understanding, it is primarily the acquisition of a long-term tenant. The longer the contract, the more stable the lease conditions. We prefer minimum 5-year contracts. Another factor is the amount of rent, which brings a reasonable profit so that the property does not generate losses. For a facility consisting of several premises, the mix of tenants is also important, so that the assortment offered by them complements each other, satisfying shopping needs when visiting one place.
To sum up, starting from a careful choice of locations, through good contacts with tenants, their good selection, properly secured lease agreements, as well as an appropriate construction project of the commercial facility, you can finally get a thriving point where residents can make convenient purchases that meet their consumption needs: time saving and comfort are the key. And it is precisely such undertakings that we, acting like a skilled chef, try to implement at Higasa Properties.Back