Due Diligence
Providing incentives for retailers to take space can seem an attractive option, but the problem is that the retailers that emerge can be better at taking incentives than they are at retailing!
To avoid this problem it is accepted practice to study company accounts, but this approach can rule out start-ups or businesses in the early years of trading. An alternative is to look at the shops: it is too easy for the non-retailer to be impressed by the fit-out and not check its effectiveness as a machine to take money.
FSP employs rigorous techniques to evaluate the strength of retailers who are under consideration for tenancy. Not only is financial performance analysed by use of published materials, but visits are also made to the retailer where strengths and weaknesses can be assessed in critical areas such as presentation, product range and market "fit" with other existing or planned centre tenants.
Where appropriate, FSP prepares an estimate of likely sales performance over a three-year period and identifies the maximum rent consistent with adequate profitability.
Talk to FSP before signing up new tenants and ensure the success of your customer offering.
Click here to view our Sustainable Rent White Paper.
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This update provides a terrific snapshot and insight into the retail sector and just how active it really is! It has to position you up there with Verdict
Graham Freeman
