The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.
Peter Drucker
There’s a cool trick in retail real estate where properties can be made more valuable simply by situating certain businesses next to each other.
Most often we developers take the quick route, leasing space to whoever will pay the highest rent - and we end up with a collection of awkward roommates shouting over each other for the customers’ attention:
But when we take the time to understand the customer, and we place businesses together that complement rather than compete, the whole becomes more valuable than the parts.
The quirky buildings of a Parisian flea market, for example, appeal to a similar customer whether the businesses sell vintage bicycles,
or watering cans and coffee grinders.
Unusual ephemera fills the buildings.
Even a shop dedicated to bosom enthusiasts.
Combined together, it creates a world-renowned destination - with rents far higher because of it.
Far from the Paris flea markets, this otherwise unremarkable collection of Oregon warehouses has a small patio.
With trees, a trellis, and brick pavers.
A magical oasis tucked between asphalt parking lots.
With access to ridiculous breakfast sandwiches.
And as opposed to the surrounding nondescript warehouses, this one attracted tenants all focused on a specific consumer profile.
The customer that enjoys handmade croissants may also enjoy handmade pottery and candles.
And space that attracts those making candles and pottery also attracts those making other things.
Like repurposed waxed cotton vests lined with fur and vintage Pendleton blankets.
And the buildings become far more valuable than were they just used as warehouses.
It’s not about the buildings, it’s about what’s being sold.
The buildings can be simple tents.
But, depending on the location, can become valuable because of their proximity to certain consumers.
In this case, capes.
When we understand the customer, as Mr. Drucker says, the product sells itself.