Investment executive reveals how high-touch management is transforming shopping center operations.
The key to successful retail property investment isn’t just about location anymore, it’s about creating true partnerships with tenants, according to one industry veteran who says many property owners are missing crucial opportunities by maintaining an arms-length approach to management.
“We believe the tenants are partnerships,” says Ginnie McCorkle, CFO and Partner at Kobalt Investment Company. “A good shopping center recognizes that it’s not anything without its small businesses that support it.”
This partnership philosophy translates into immediate results when Kobalt acquires properties from more hands-off owners. “It’s one of our favorite experiences when we buy a shopping center and the tenant thanks us profusely day one for picking up the phone,” McCorkle says. “I can’t tell you how many times we get that.”
McCorkle’s team goes beyond basic property management, focusing on creating environments that strengthen both tenant businesses and community connections.
“We put a lot of effort into marketing and events and making sure that we’re building a community within a shopping center,” McCorkle explains. “We’re trying to make the shopping center a real place in our community, not just kind of a forgotten mix of tenants in an old building.”
This approach includes attention to fundamental property conditions: “Let’s make sure that you can see the signs. Let’s make sure that the parking lot’s in good condition, the shopping center’s well taken care of.”
The impact of this management philosophy extends beyond current tenants, McCorkle says. When property owners build strong relationships with existing businesses, it creates a natural marketing channel for attracting new tenants.
“When a tenant is talking to their friends, who may also be business owners, often are business owners, we’re a place they recommend to do business and people that they recommend to do business with,” McCorkle notes.
While this high-touch approach requires more resources than traditional hands-off management, McCorkle says the results justify the investment. The firm continues to expand its vertically integrated platform, maintaining in-house leasing, management, and maintenance capabilities to ensure consistent service delivery across their portfolio.
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