5 Tips to Cut Shopping Center Costs0 Comment
1. DITCH THE PAPER, DO DIGITAL: Rising paper costs and decreased customer usage makes going paperless a “no brainer” for your shopping center. Shoppers like receiving messages about retailer sales, upcoming events and safety information on their smartphones, tablets and digital devices. Embrace the opportunity to dump the paper flyers, and enable your centers with Wi-Fi.
2. GREEN IS THE NEW BLACK: Save money and reduce energy consumption by understanding the details behind your utility and energy bill. Consider upgrading HVAC controls to use economizers, night setbacks and staggered start times. Switch the center’s lighting to high-performance LED and florescent bulbs. These two simple investments in energy efficiency will pay off with long-term maintenance savings.
3. TRIM THE FAT: Pay close attention to the scheduling practices of your security and housekeeping vendors, and align outsourced services to peak times. Additionally, redefine the scope of work in the bidding process to eliminate unnecessary expenses and contracted services. Consider an in-house solution for regular plumbing and parking lot sweeping whenever possible.
4. TURNING TRASH TO TREASURE: Waste disposal costs continue to climb, and proactively managing your center’s garbage removal can directly impact the property’s bottom line. Emptying trash compactors when full achieves significant cost savings rather than scheduling waste removal on a regular basis. Conduct a waste audit to evaluate if a recycling program is viable and would reduce the center’s waste stream. Consider a recycling partnership with a neighboring property to reduce disposal costs.
5. CUT CLEANING COSTS: Regularly cleaning a center does more than keep it attractive; it’s essential for creating a safe environment for shoppers and tenants. Consider switching cleaning services to non-peak daytime hours to improve energy consumption and labor costs. Invest in floor-care machines that automatically dispense cleaning solutions to reduce waste.
By: Karen B. Raquet, Director of National Retail Property Services, JLL and Janine Christian, Director of Retail Property Management, JLL