Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Omnichannel is driving discussion around property lease models

The growth of omnichannel model is driving increased collaboration between shopping centre owners and retailers, as well as presenting fresh discussion on lease terms, delegates at the International Council of Shopping Centres’s Destination Retail conference heard today in London.

Brenna O’Roarty, founder at property strategy consultancy RHL Strategic Solutions, said the changing retail landscape meant that the store was no longer viewed as a simple point of sale.

“Historically shopping centre owners have been successful through clever tenant mix, marketing and positioning of the offer but now they need to build a direct relationship with consumers,” she added.

Alan Billingsley, principal at US-based retail real estate research firm Billingsley Investments, suggested the store remains central to an omnichannel strategy, but retailers have not yet been able to quantify its value separately to online, taking into account the store’s catchment area and halo effect.

An audience member raised the example of Bicester Village, owned by Value Retail, which leases out space and takes a percentage of retailer’s sales.

“What is becoming clear is that for lease terms, there is no one size fits all and negotiation terms will remain for both parties,” responded O’Roarty. “I believe diversity in lease strategies will increase going forward.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.