The revenue that triple net retail properties generate often comes from an amalgam of revenue streams. Consequently, when you evaluate the revenue potential of a triple net retail property, it’s important to examine every stream of revenue – no matter how small – as opposed to only examining revenue generated from the business’s core practice.
Many retailers implement several strategies for increasing customer support (i.e., getting customers to spend more money). A business that understands its demographic and has a manager who cleverly arranges the store to create buying opportunities can make a major improvement in the business’ net operating income.
CUSTOMER SUPPORT STRATEGIES
Below are some strategies that triple net retail businesses are using to increase customer support. Owning a commercial real estate property whose tenant uses these strategies, or has developed customer support strategies of its own, can offer increased financial security and make the property more attractive to other investors.
- Large discount stores offer food items to get people to visit their stores weekly, while hoping they will purchase something from electronics, where profit margins are larger.
- Fast foods restaurants change their menus to capture new customers. For example, McDonald’s has added designed coffee drinks to compete with Starbucks.
- National drug stores such as Walgreens sell everything from candy to home goods to entice customers who come in to fill prescriptions to purchase additional items.
- Grocery stores add drive through lanes to make pharmacy pickups more convenient, and some stores host carnivals in the parking lot to help draw in new customers.
- Coffee shops such as Starbucks place music, books, and accessories near the payment destination to entice people to purchase more than coffee drinks.
- Fast food restaurants and coffee shops offer free Wifi and large screen TVs to try to get customers to stay longer and order more food and beverages.
In many cases, retailers don’t need to implement customer support strategies to succeed. Rather, for many businesses, implementing the strategies is about increasing the bottom line and ensuring they are insulated against negative economic trends. By extension, these businesses help protect the financial interests of those who lease property to them.
