Strategies for Helping Retail Tenants Succeed

Zikakis: “We are focusing our efforts on the success of the tenant because the interests of the landlord and tenant are aligned.”

SAN DIEGO—Developing a tenant-focused digital strategy for all its retail properties of any size focuses promotional efforts on the individual tenants rather than the center itself and is more effective in increasing foot traffic, Capstone Advisors ‘ president Alex Zikakis tells GlobeSt.com. Zikakis says a new wave of tenant relations is here, and retail property owners should be focusing in on their tenants and going digital. We spoke exclusively with Zikakis about this trend in retail and how his firm is capitalizing on it. GlobeSt.com: What new tenant-focused strategies are retail property owners using to attract and retain tenants? Zikakis: Typically, once a property owner leases a space, the relationship between the tenant and owners is limited to issues regarding billing and service requests. Marketing discussions are usually limited to signage. For better-managed properties, the property owners might host one focused on-site event per year—with specific tenant promotion as a secondary benefit to the overall center’s promotion. Owners of very large properties may also manage a promotional fund that is typically used for limited advertising, such as an advertisement in the local paper or a postcard mailer. However, considering a mailer can cost $10,000 for a one-time promotion, the cost is usually prohibitive for all but the largest properties. At Capstone Advisors, we do things a bit differently. As part of our asset-management services, we have developed a tenant-focused digital strategy for all of our retail properties, both large and small. Our strategy is unique in that the focus of our promotional efforts is on the individual tenants, not the center itself. GlobeSt.com: Why should retail property owners shift their marketing focus from the property to the tenant? Zikakis: By focusing social-media-marketing spending—including promoted content and influencer outreach—on our tenants, we can help solidify our existing tenant relationships, drive business to individual tenants, reduce tenant turnover and attract new tenants with the quality of our tenant benefits, while also increasing foot traffic at our centers overall. We are focusing our efforts on the success of the tenant because the interests of the landlord and tenant are aligned. As a landlord, we want to see our tenants enjoy strong sales. If the tenant is doing well, they are much more likely to renew when their lease term comes due. In addition, there is generally synergy between the tenants as successful tenants bring in more shoppers, which benefits the neighboring merchants in the center. Nothing speaks to the success of a center more than a collection of tenants enjoying strong sales. GlobeSt.com: What should owners do to create effective digital and social-media support for tenants of all sizes? Zikakis: The most important step in developing an effective digital and social-media strategy for tenants is to first identify your goals. Do you want to drive users to your center or a tenant website? Do your tenants need assistance with name recognition in their local market, or are they trying to improve foot traffic? Establishing what you want to accomplish will make it easier to decide what tactical digital strategies to pursue. For example, for the rollout of our tenant-focused social media strategy, we developed a two-tiered goal for promoted content on tenant specific Facebook pages to: 1) increase brand awareness of the tenant, educating local consumers about their business, services and location; and 2) encourage key audiences to claim promotional offers that then translate to on-site sales and increased foot traffic. We also implemented an “influencer marketing” strategy to further promote specific tenants at their centers. We engage strategically selected influencers to expand the audience we are targeting for each tenant, increase brand awareness and bring in new customers. GlobeSt.com: What else should our readers know about this topic? Zikakis: Readers should know there is no longer a “bricks-and-mortar” strategy that is separate from a digital strategy. To be successful in today’s environment, all retailers with a physical footprint need a strong digital strategy. Forward-thinking landlords will help tenants stay current with today’s current digital-marketing strategies. At Capstone Advisors, our goal is to take those steps to go beyond the normal landlord/tenant relationship. Helping develop cutting edge e-marketing strategies is just one example of how we are thinking outside the box.