St Mark’s Square is a 100,000+ sq ft mixed use asset in Bromley, which sits beneath 200 residential units. The property is situated directly opposite Bromley South train station and is anchored by Premier Inn, Vue, Pizza Express and Nando’s and has a 400 space underground car park. The development was completed in 2017, and has a rental income of £2m.
Challenge
Increase occupancy, reduce landlord shortfalls and boost overall net operating income.
Cited Strategy
The asset was close to being fully let prior to Covid 19, but a number of tenant administrations meant that there were several vacant units left to let. As a result, the asset presented poorly and there had been a lull in attracting new tenants. Firstly, Cited produced a summary of onsite recommendations to improve the overall look and feel of the site to include things like new signage, public art and landscaping which were all designed to enhance the public realm.
Cited then produced a realistic target tenant list to enhance the occupational mix in the right way, rather than seeking to fill units with more of the same. Through effective gap analysis and strong market relationships, Cited were able to speak with a host of exciting and vibrant brands and have quickly been able to halve the void rate. This has had both a financial and aesthetic improvement to the asset.
Cited have assisted in negotiating and agreeing surrender premiums from former tenants and simultaneously relet units to brands who are in line with overall strategy. As part of this instruction, Cited have also overseen and advised on tenant fit out works, dilapidations settlements and lease re-gears.
Cited have also worked collaboratively with the Landlord’s managing agent to drive cost efficiencies and help deliver top class estate management.
Result
As a result of this strategy, occupancy has increased, net operating income is at its highest level to date and the site presents really well. The strategy is to lease the remaining vacant units and to continue to keep delivering value to the asset and client.
