BUILDING A SHOPPING CENTRE

By Anthony Dylan Anak Frankie Jurem

Let us build a new shopping centre. This was what I was asked to advise on. For context, I would have to say that shopping centres are not that easy to understand or plan for. It looks rather simple but the work that goes in before the thought of embarking on planning and thereafter, building one.

Let us start with the basics. My first step was to hear from the owner of the intent to build a shopping centre. What would that new retail property be envisioned to provide for within the community they are in? It could be aspirational or it could be a basic needs type. Additionally, as another possibility, it could be narrowed to being one more specific in category offering. It was important for me to understand the mission and vision statement leading to the goals.

The second step was to engage and commission a professional market research firm to properly gauge the market in which the shopping centre or retail property would be part of.

The research encompassed the following. Market overview; Project and Site Evaluation; Trade Area Analysis; Competitor survey; PORTER’s Modelling; SWOT analysis and Focus groups.

The data obtained provided a good framework for the third step, which was the Design Brief to the Architects. This included the design of the vertical transportation, placement of amenities and the façade outward outlook intent. A Spatial Planning for the potential net lettable area was worked out along with the general layout plan.

The fourth step was to include the Tenancy Mix strategy along with the Marketing Strategy. It was important to design the Tenancy Mix to fulfil the retail gaps within the community and to provide for the aspirational value. Branding would be the role of marketing, and I believed as previously done, that Public Relations led Branding would provide a stronger message and storytelling.

The Tenancy Mix which was designed did not have anchors but instead Majors. We called them Majors instead as we wanted a cooler word for Mini Anchors. Majors, Core Retail Specialty stores formed the trio of grouped elements. Subcategories within each included a supermarket, gym, health, co working spaces and Food and Beverage.

The Marketing Strategy targeted on creating a Brand persona of which it builds soul. Public Relations and Publicity would drive the brand, and the Tenancy Mix would be the backbone of which the soul obtains its skeletal and physical form. A Corporate Introductory Kit was prepared which best described the project and the call to action on the part of potential partners. This kit was flexible enough and complete enough to satisfy the appetite of would-be tenants, vendors, contractors and partnerships.

The four steps were generally the first Phase of Work, and the next second Phase of Work would be more time bound. This included the engagement of the M&E (Mechanical and Electrical), C&S (Construction and Structural), QS (Quantity Surveyor) and Legal consultants.

The consultants must be hired to work with the previously engaged Architect. A specialist Interior Designer may also come later into the picture if this expertise could not be fulfilled by the Architect. The Project team would consist of the drivers of the Project which would include the above-mentioned consultants and experts. They in turn would provide directions for project tender and the seeking of financial approval and the execution of awarded contracts.

The formation of the Property Team sits in the second part of the Second Phase. The following heads must be hired in the Organization chart: Property; Human Capital; Finance; Legal; Leasing; and Marketing.

Six Heads must be in place to start the ball rolling. The hiring must be done before the construction begins.

The Third Phase would be the actual construction and completion with CCC (Certificate of Completion and Compliance). This could take anywhere between 30 to 36 months on average depending on complexity.

The Fourth Phase would be the handing over of the premises to tenants to begin fit out and to start gaining momentum towards the official launch date of opening. It would be expected that some majors would require their space to be done concurrently with the application of the main building works’ CCC.

In this case, this was a brand-new shopping centre which had a plan of 500,000sqft of net lettable area. The layout is unique as it borrowed the idea of a spherical layout. One possibility was a perfect sphere whilst the other was an oblong running track layout.

Each choice would provide a unique shopping experience with emphasis on open-air circulation and mechanical ventilation for retail shops. That meant that the shops would be air conditioned but the common are, would not. The use of data on the sun light and heat intensity as well as the creation of wind tunnel effects and staggered roof cover with a garden like landscape which opened up to a public square made this a seriously engaging concept.

The stock delivery and waste management journey for tenants and the provision of both indoor and covered outdoor car park spaces complete with the sustainable promise of rainwater harvesting, solar power panels and sensor fittings made the operability even more meaningful. The owner had even thought of using artificial intelligence technology to complete the use of 3^rd party software to aid in managing the operations.

Their vision is a Shopping Centre For The Future. This had been a revelation for me when I was advising the past year. Where would this interesting retail property be? It could be in Subang Jaya perhaps?

Personally, I think Subang Jaya has too many typical shopping centers. Some older ones should seriously consider a full revamp or even a demolition to unlock their own value. Not many can challenge Sunway Pyramid or IOI Mall Puchong right now. Nevertheless, sometimes things may surprise you, like this project if it comes into revelation.

Cheers Subang Jaya!