We introduce you to Emmanuel Marque, Real Estate Asset & Investment Manager at Nhood. Today we speak with a professional in the Real Estate in the Shopping Centers sector. Learn about how they are living the current situation, specifically in France; understand the challenges malls are facing according to new business models, and enjoy his comments related with innovation. In Nhood, they are investing in technological tool that help to create an efficient overview of each asset, thanks to the data the collect with tis technology.
Stay to enjoy this interesting interview with Emmanuel Marque!
Shopping Mall Interview – Get an efficient overview of each asset
First of all, analyze the current situation… How are you living it?
About the current situation in France:
During the last 3 years, consumptions rituals has changed. Small local retail units (< 1,000 sqm) have been more attractive than the largest one’s, people looking for local stores to avoid spending time in large shopping center. 2023 seems to be a recovery year and even if flows in large shopping malls are still below 2019 figures, we have an encouraging momentum.
Ready to wear shops are the most affected by the new rituals and most of them try to negotiate better letting conditions, some of them are ordered to close (compulsory liquidation).
What is the biggest problem or weakness that a shopping center has to face?
Rising services charges cost is an issue for shopping gallery (energy cost, security cost as well), and many tenants try to negotiate cap of services charges all over the lease duration to control expenses. This kind of costs is drastically lower for retail parks, this is the reason why this type of assets is performing and well appreciated both by tenants and investors.
What role does technology play? How does it help a Shopping Center in the current situation? Would you highlight any in particular?
We develop new tools based on new technology. We work with stereograph (twin up tool) which help us to create numeric models of all our real estate assets. It’s really efficient to get an overview of each asset with a compilation of data (technical, leasing, services charges levels, surface areas,….).
How do you achieve customer loyalty now? What do you think this customer is looking for? How can we offer them an optimal experience?
Customers are looking for new experiences. We provide them with attractive experiences based on F&B and leisure.
Are you optimistic about the future of this sector? What do you think the mall of the future will be like?
Shopping malls have a future. First of all, because people like to stroll within shopping galleries to see what they purchase. E-commerce and physic retail complement each other.
In top of that, French regulation is becoming more and more restrictive and building permits for new retail constructions are tricky to obtain. Then, existing sites are really looked after by developers or investors. I think that old generation of shopping center is going to disappear and major owners think about transforming pure retail areas in mixed use areas with both retail, services, housing, working areas (offices, light industrial buildings) to provide local people with everything they need (a living district, a place brimming with life).
Malls trust on Flame Solutions
Now you can start measuring what occurs in your shopping mall and analyze how you clients behave when they visit your place. Choose Flame solution for Shopping Centers and optimize your operational and marketing strategies according to precise data. You will be able to understand your customers needs, and predict trends and patters of the market.