According to a recent Bloomberg Technology article, shopping malls are facing some tough times.
Stores are closing at an alarming rate, with major chains shutting down underperforming locations. Retailers like Macy’s are looking to close some 100 stores. Even retailers that are financially healthy are trimming down stores to keep their focus on their most profitable locations.
With an estimated 9,000 to 10,000 stores likely to close this year, leases have become a major negotiating point. Retailers are looking to maintain their flexibility by significantly shortening leases from five or ten years to as low as one or two years.
This shift in the market will make data, analytics and planning for property management an even greater need for commercial real estate. Hubble has been helping commercial real estate companies for over a decade.
As the market ebbs and flows, here is what our customers, like Cushman & Wakefield, have shared with us.
- Be alert. Using a real-time, focused solution like Hubble to monitor for key events has significantly helped them to stay on top of accounts. For example, an alert that notifies property managers in advance of lease expiry helps them to get ahead of conversations and negotiations.
- Be future-looking. Robust planning capability in Hubble allows them to do what-if scenarios and use models to not only anticipate problems but also to vet potential solutions.
- Be aware. In tough times, it’s vital to have everyone informed and aware of the company’s KPIs and other significant indicators. This helps to get the entire organization focused on what matters and delivering value in the right way. Hubble’s dashboards help companies share real-time information including occupancy statistics, renewal opportunities and, of course, financial results.
What could Hubble be doing to help your commercial property business in good times and bad? Visit our solution page for Real Estate Management to learn more.