One area hit in the economic downturn is the retail sector, seeing alarming percentages released in the first quarter of this year. As the leading South African property management company, JHI is able to offer services, advice and years of experience to property owners with a look beyond the present so that real solutions are able to be developed which will curb the downturn. Johan Engelbrecht comments:
“At present, retailers and landlords face unique and specific challenges,’ he notes. ‘They are facing pressure due to the fact that growth in the sector exceeded economic growth substantially. As a result, we’re not seeing growth in the sector now, so much as movement – for example, retailers are locating from one hub to another. Having already established a presence in most key traditional national retail nodes, the only remaining opportunities for most retailers are regional shopping centres.’
However, warns Engelbrecht, this must be done with due caution. ‘Returns for landlords are guaranteed only when the right tenant-mix is in place,’ he points out. This is where JHI has an advantage: the company manages 223 shopping centres nationally, and enjoys a presence in Namibia, Botswana and Lesotho. We’re therefore able to conduct a retail analysis of what works, and from there, we can advise landlords of the right model and tenant-mix. This counsel is especially important for landowners in regional centres.’
“A key factor to keep in mind, which has significantly impacted the sector, is the limitations of service providers – and their rising costs, which has contributed to an increase in the cost of occupancy. This has an influence on the feasibility of new developments, which, combined with pressure on consumers’ wallets, again points to the consolidation and redevelopment of existing nodes as the preferred modus operandi.”
Engelbrecht adds “JHI is also able to facilitate and coordinate relationships between landlords and tenants, a liaison which is of key importance. I believe that these services are the factors which differentiates us from other players, our emphasis on delivering value, and providing an integrated service offering, sets us apart.’
‘Our chief concerns at present revolve around re-tenanting or extending existing operations, or developing new nodes in second tier towns that currently do not enjoy the benefit of a centralised shopping centre,’ Engelbrecht concludes.
Publisher: eProp
Source: JHI
