Define "tenant mix."

The concept of "tenant mix" refers to the strategy of selecting tenants for a property with the main goal of maximizing appeal and profitability through compatibility and customer draw. A well-considered tenant mix is crucial because it can enhance foot traffic, create a desirable shopping or living environment, and ensure that the businesses complement each other. For example, a mix of retailers that cater to similar demographics can create a synergy that attracts more customers, while a mix of different types of businesses can provide diverse offerings that appeal to a broader audience.

This strategy goes beyond merely increasing tenant variety; it involves a thoughtful approach to how different tenants can work together effectively to enhance the overall experience for customers and increase the success of each business. When tenants are compatible, it can lead to enhanced customer satisfaction, as shoppers or visitors may visit multiple stores or services in one trip, thereby benefiting all tenants involved.

Other definitions, such as a simple ratio of residential to commercial tenants or a general marketing method, do not capture the intricacies and strategic importance of creating a harmonious tenant environment that effectively serves customers. Instead, they focus on narrower aspects of property management or tenant recruitment that do not fully reflect the broader objectives of optimizing tenant relationships for mutual benefit.