Tenant mix

From CEOpedia | Management online

Tenant mix is the selection of tenants for the commercial property like shopping center, retail park, etc. Tenant mix is an important factor in designing a mall center. Properly selected goods and services can increase the number of clients and bring high sales revenues. Shopping center tenants should represent various industries e.g. food stores, clothing stores, shoe stores, speciality stores, pharmacy. To determine effective tenant mix we should know statistical analysis of demographic data and customers' buying habits.


The choice of tenants depends largely on the location of the center. We have to know what type of customers will be shopping at the mall (what budget they have, what they usually spend money on). In addition to choosing the best types of tenants, we should also think about other influential factors. There are important things to consider:

  • number of outlets
  • size of outlets
  • placement of every outlet - stores should be placed according to types of outlets. For example, on one floor there could be clothes stores and on the next floor food stores. There should also be separate sections of stores typically for men and those for women. Proper placement makes it easier for customers to navigate the building. Stores with luxury brands should have their own area.
  • points of entry into a shopping center

During planning the above-mentioned things, we should choose the best solutions that will be the most convenient for clients.


Thinking about tenants we should also consider if competing stores do not detriment each other. Stores located next to each other should be selected so that interest in one outlet would be beneficial for the other. Some stores, such as grocery stores, should not be too many, because it will not be profitable. It is very important to place stores in the appropriate floors. Ground floor is the most valuable floor in shopping centers. There should be located high-profile brands, which show image of the whole center. Less profitable tenants (for example services, multimedia, health&beauty) should be located on the lowest floor.


International Council of Shopping Centres (ICSC) presents industrial statistics, which show the percentage of total shopping center space allocated to each type of store. These statistics can help retail manager to choose the most suitable tenants. For example, in Urban mall food stores occupy 16% of the area and fashion stores up to 41%. Service stores reach only 2% of the area. In Suburban retail complex food stores and food specialities take up the most space (20%)

Prospect's needs

Every customer has different expectations from the shopping center, so there should be placed various goods and services to meet everyone's needs and to enable them to make full purchases. To make a mall center more attractive to customers, it should contain not only shops but also places to spend free time with their family and friends, such as:

  • cinema
  • gym
  • restaurants
  • coffeehouses
  • playroom for children - it is a great option for parents to leave their children in special playrooms

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Author: Emilia Zapart