As retail property ages, strategy for this property can shift and change. It is where matters of the property renovation or refurbishment arise. Not each property must stay within the current use and keep the existing tenant profile, or can be well suited for the change. The property that doesn’t change or adjust to the community needs can reverse in the performance or stagnate.
Astute investor may look for the change as opportunity; and something to increase the property use or performance. Demographics of region and demands of local business or domestic community must be very closely monitored so this change will be seen as well as seized at a right time as well as in a right way.
What renovation choices are available?
- Exercise of the options before lease. Suppose tenant exercises such option for further term early, this gives landlord the surety of income as well as stability in tenant location.
- Renegotiation of the existing leases. Staying in the close contact with the tenants in property can provide the renegotiation opportunities.
- Updating lease form and increase the revenue potential. The good leases are made by the good property lawyers, which have considered function of property and investment plans of landlord on retail shop renovation Singapore.
- Working with the tenants to offer timely expansion or contraction strategies. Lots of tenants will have to adjust the business and size. It is better you adjust for tenant than you will lose them to your competitor.