In recent years, we’ve seen a shakeup in the way malls have typically operated. For example, the fast-fashion retail store Forever 21 recently had to shutter all 350 of its U.S. stores. But instead of panicking, many GPs are capitalizing on the shifting mall landscape. Mall tenants must now deal with rising rental fees and changing consumer demands. Here, let’s explore this evolving market and the role investment management software plays in enhancing operations for GPs.
A Closer Look at the Changing Mall Market
Demand for retail spaces has never been higher, leading to all-time low vacancy rates. The average leasing time for shopping centers is down to 8.5 months, which is the lowest we’ve seen in two decades. Even more staggering: 80% of retail space is leased within 6 months. As demand continues to surge, rental rates are rising, shifting the mall landscape.
Typical mall tenant profiles have changed. Now we’re seeing an increase in local retailers, fitness-centered stores, and medical tenants. Mall tenants must adapt to these rising rents by agreeing to more flexible leasing agreements. They may also need to agree to multi-use or shared space concepts in order to secure space with such heavy competition.
While tenant demand and corresponding rising rental rates may benefit GPs and investors, they also must figure out how to deal with these new lease complexities. That means GPs must find a way to keep up with performance tracking and utilize key tools to assist with market forecasting. That’s where the right investment management platform can help.
Leveraging the Right Software to Stay Ahead
It’s important for GPs to utilize software that gives insight into centralized data and real-time analytics that can help to inform CRE operations. That way investors can monitor and compare mall tenant performance and market trends.
In addition to forecasting trends, investment management software should help GPs manage their assets and simplify operations. Use innovative automation features to simplify and customize performance reporting, as well as improving stakeholder communication. GPs can utilize a platform that promotes engagement with performance reports, shared dashboards, data-driven updates, and communication between investors and partners. These features can increase investor engagement while also boosting transparency and trust.
Covercy: The Ideal Tool for GPs Managing Mall Tenant Changes
In the current mall market, it’s important to adapt. Covercy is the ideal solution for balancing tenant needs with investor goals and streamlining CRE operations. Our comprehensive investor portal allows your stakeholders to stay informed every step of the way, viewing transaction history and performance reports, as well as sharing secure documents.
Covercy is a unique investment management platform that seamlessly integrates third-party banking features in order to process payments easily and efficiently. Distribution payments in particular can be complex and time-consuming, but our software automates these payments so that you can focus on more important things. With these banking features, GPs can also fundraise for capital easily, make cross-border transactions, earn interest on uncalled capital, and much more.
With Covercy, GPs can easily manage communication, simplify distribution payments, and forecast emerging market trends. Book a free demo with us today to explore more of our innovative features.