It is often misunderstood that commercial real estate operates by one rule: get the money. This is a shallow perception. The successful operation of commercial properties benefits greatly from a deeper understanding of the dynamics and variables that often lead to success or failure. One of the main factors in cultivating a thriving shopping center is the quality and diversity of the tenants. Large anchor stores provide stability and draw traffic, but it is the collective culture that is created from community stores in the shopping plazas that really determines a location’s vibrancy. This is why vetting tenants who would occupy the commercial spaces is so critical.

Ramy Eidi, CEO, and founder of Eidi Properties puts it like this:

Vetting tenants is very important. We pick tenants based on the type of business they operate and how they will complement other tenants within our center. The co-tenancies are very important, additionally, we like to know a little about those tenants: their experience, their history, and their success rate. We do our own analysis based on that.

Reliable tenants who succeed in a commercial space are vital but what’s not necessarily realized is how the area thrives as a whole. Ideally, our tenants are long-term clients with diverse merchandise. Shoppers enjoy knowing that a store will be open when they visit a center and that they are able to enjoy a variety of stores at one stop. Visiting the location becomes a positive experience that will likely be repeated.

Reliable stores and diverse attractions keep customers coming back. This helps everyone at the location by bringing in consistent traffic which creates demand beyond the original shopper’s mission. However, when a space becomes a revolving door of constantly changing tenants, it puts stress on everyone involved. Shoppers abandon the location because they are unsure what’s offered from moment to moment and all of the nearby tenants suffer from the reduced patronage.

The more traffic each store attracts, the more traffic every store attracts. And, this traffic is hard to maintain when shoppers are unsure what store will be open when they arrive. These factors are why we, at Eidi Properties, vet our tenants more vigorously than mere credit reports and financial statements. We want to know about their business plans and their long-term vision. We also want our tenants to compliment each other. Providing a variety of stores in a shopping area allows customers to cross off several to-do list needs with one stop. Avoiding location redundancy also helps everyone succeed. Putting two sub shops next door to one another almost assures that one of them will fail and both will be weaker. But making sure every location has attractive shops to choose from draws consumers and keeps them at the center longer. These factors benefit everyone.

We, at Eidi Properties, are committed to doing what it takes to make our commercial real estate successful for everyone involved. By doing this, we add value to our community, our shoppers, our tenants as well as improve our own business success.

This article was written by Jerry Mooney.