Have you ever wondered, what is the methods do they have for earning the income of the department stores and the shopping centers ?. Today Saranrom will tell you about it!

Have you ever wondered, what is the methods do they have for earning the income of the department stores and the shopping centers ?. Today Saranrom will tell you about it!

Based on the website's article (Marketeeronline) said that a department store or shopping center is a form of real estate development business. whose main income comes from tenants who are entrepreneurs in the retail business. By dividing the space in the building into different parts and rent out to the tenants, whether they are famous department stores like Siam Paragon, department stores in The Mall group, or even CentralPatana also do the same business models.

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Currently, there is a trend which is popular. It appears to be an open shopping center or what we know as a Community Mall. Where space for shops is separated into smaller sections, unlike a large department store. The different between the large department stores and the community mall was the large department stores have to shared air conditioning but the community mall have a sperate air conditioning by each rooms. The hallways of the large department stores are cool and comfortable due to the all round air conditioning . But in the comunity mall, it separate air conditioners, which only used in the retail areas. As for the walkway, there is only a canopy to protect from the sun and rain, without air conditioning. In order to save money on electricity bills.

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Okay, let's cut to the chase. We'll begin our journey to take a look at what sources of income they get from opening the depatment store and the shopping center.

1. Known as a shopping center, the main income which unavoidably is from the tenants. (This part should be easy for everyone to guess right!). And will be collected from the store. The rental rates vary depending on the location of the shopping center. The location of the shops within that shopping center including the type of tenant for example, if it's a corner room, a good location, next to the road, lots of people traffic whom can see the shop clearly, the rental rate will be more expensive than other rooms. Because of the advantageous location.

Please allow me to give an example of the well know famous community mall in Bangkok.

This famous community mall in the Asoke - Phetchaburi area call Baan Kampu Asoke which is very popular project among the young office workers and university students in the area. The reason of this idioms have an origin. Due to the location, is next to the university name Srinakharinwirot Prasarnmit (SWU) only 100 meters walk and surrounded by office buildings and the plenty of condominiums.This project is suitable for expand yours business or starting your first dream business in your life. Why is that?, have you audiences ever heard the qoute of "if the location is good there is a better step to win the the business market". Owing to the project was located in the "prime area" as it said in the first two paragraph. And the rental rate is not higher than what you think it is (veri chep : uncle roger sound). For example, a rent out room size of 137.63 sq.m is only 1,500 baht per square meter (secretly whispering, if you guys contact through us, there are additional special discount prices available as well. Because the project owner, have a vision to fulfill the entrepreneur's dream of running a successful business. Personnel can be contacted via facebook messenger or Line ID: saranromping and sirpang). Therefore, if we can assess the initial financial feasibility from the assumption of income for a shopping center, the rental rate per square meter of XXXX baht per month will be used as the base for estimating the preliminary income.

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2. Apart from the method of obtaining rent from retailers. According to information which we gathered from the website and customer service division of a sizable well-known department store of shopping centers can. They are also make money by asking tenants for revenue shares in lieu of collecting rent. To put it another way, this is known as asking to share profits with tenants rather than collecting rent. The percentage of revenue that the owner of the shopping center will get from the tenant in place of rent, it will be roughly fifteen percent of the store's monthly revenue.

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3. Revenue from space rentals for special occasions. There are often spacious halls or recreational areas in shopping complexes the is free space. It can be rented out to different businesses for marketing campaigns like parties with product discounts.The shopping center will get 10 to 15 percent of the overall revenue from space rental is earned from renting out event space.

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4. Income from utility bills or water and energy bills obtained from tenants. It is going to be between 10 and 15 percent of the rental income.

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5. Service revenue from shared spaces including parking lots, restrooms, and hallways. Roughly 10 to 20 percent of the rental rate goes toward this revenue. It is dependent upon the common spaces where customers must be served by the retail mall.

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6. Get payment for the space you rent as well as extras like a place to store stuff for others who come to rent it out for events. Cost of cleaning services Service charges for the installation of electrical apparatus during event planning, etc. About 5–10% of the rental income will come from this source of income.

I appreciate you all reading thus far. Whether it's a large department store or a community mall, the revenue model of a department store isn't just only from the rent out. but there are several option that they can earn the income. *To make sure you don't miss any updates, please click Like, Share, and Follow if you find the content informative or useful essentials by Saranrom Estate and Hotel.

References 

-Marketeeronline.co 

-CentralPatana.co.th 

-Pantip.com

-Youtube.com