Income generated from additional revenue streams, that differ from or enhance the primary income of a property. Ancillary income can take many forms such as parking lot revenue, specialty leasing, advertising, etc.
A holistic review of a managed portfolio can yield tens of thousands of dollars in potential revenue when ancillary income is brought into consideration. The state of the ancillary market has evolved and there are numerous options available for various types of properties. This can include but is not limited to supermarkets, convenience stores, shopping malls and large town centers. The following is a breakdown of how the different forms of ancillary income can enhance your property.
Parking Lot Revenue & Specialty Leasing:
One avenue of parking lot revenue is implementing a textile recycling bin on your property for use by patrons. This allows your patrons a simple and effective way to recycle their unwanted clothing which in turn helps the community, the environment and drives traffic to your centers. Organizations will pay a specified monthly rent to have their textile recycling bin on site at your location. They will maintain the bin, ensure safety, provide consistent pick up and work with you to assess the best placement within your parking lot. These bins typically utilize only a single parking space at each center. The monthly revenue generated from these textile recycling bins becomes a passive revenue stream for a landlord or asset manager.
Along with textile recycling bins your property can become a seasonal hot spot for pop-up tents that distribute fireworks, flowers and other commodities to your patrons. These seasonal programs provide your customers with additional outlets to purchase products while driving foot traffic to your existing tenants. These are short term programs with minimal footprint, but drive sizable incomes for the property. A two-week event could generate $1,500 – $4,000 in ancillary income.
Leveraging your parking lot and additional space allows you a greater opportunity to provide a one stop shop for all of your patrons. The addition of ATMS, Amazon delivery lockers, storage space and electric vehicle charging are just some of the other options that you could bring to your properties. The consistent theme amongst all of these programs is a passive revenue stream for the landlord, better foot traffic for the tenants and an extremely positive shopping experience for the customers.
Advertising and Marketing:
Your patrons will likely spend some time driving through your parking lot, loading groceries or other items into their car and/or walking around the different tenants. With all of this time spent in and around your parking lot it is important to relay positive and well-intentioned messages to the community. Pole Banner Marketing is an opportunity for messages to be delivered to your patrons by national brands. Whether it is healthcare, media or food service your patrons can benefit from messaging that is not obtrusive or interruptive but benefits their everyday lives. Your tenants will benefit from positive messages that are non-competing to their lines of business. All vendors who provide this program will ensure that the messages are to the standards of the community and better the tenants of a property. A short campaign, much like seasonal program, can further drive revenue on a passive basis for a landlord. All maintenance, installation, materials and removal are handled by vendors.
In conclusion, ancillary income is an opportunity for you to add tens of thousands of dollars to your portfolio on a passive basis. Your patrons will benefit from the convenience of these programs and tenants will enjoy the added foot traffic.
As a leader in this area we pride ourselves on finding the best mix of ancillary programs for our client portfolios, and managing them through a single point of contact management structure. To learn more please reach out to our team at info@epmnational.com. For additional insights you may also find us on Facebook, LinkedIn, Instagram (@epmnational) and Twitter (@epmnational)
Stay Safe,
EPM Operations Team
