Avoid These Budgeting Mistakes in Retail Real Estate | Episode 65: I Own a Shopping Center, Now What?

Beth Azor

It’s budget season—and here’s exactly how I build shopping center budgets from scratch.

In Episode 65 of “I Own a Shopping Center. Now What?”, I take you behind the scenes of my step-by-step budgeting process. If you’re an owner preparing budgets between September and October, this episode is for you. I’ll show you how I forecast expenses using actuals, estimate income from leasing activity, and plan ahead for those “surprise” costs like security or vacancies.

I break down how to handle vendor increases, project leasing income, and when it’s smart to loop in partners. I also share strategies to help you impress your institutional clients during budget season. And—don’t miss my special invitation to the Women’s Real Estate Investment Summit!

Key Takeaways:

• Use actuals from the first 8–9 months to build your budget

• Spread recurring costs (like landscaping) evenly across 12 months

• Estimate real estate taxes using current TRIM notices plus 10%

• Don’t prompt vendors for increases—budget a standard 10% bump

• Account for vacancies and utilities based on lease-up expectations

• Include leasing income and TIs with detailed assumptions

• Finalize budgets before Thanksgiving, allowing 6–8 weeks to complete

• Send drafts to key partners for feedback if needed

• Unexpected expenses (e.g., security) should be noted in reports

• Remember: institutions often consider switching third-party firms post-budget season

  BECOME A COMMERCIAL REAL ESTATE ROCKSTAR: https://www.bethazor.com/https://www.azoracademy.com/For more commercial real estate training: https://www.bethazor.com/training/FOLLOW ME ON SOCIALFacebook: https://www.facebook.com/azoradvisoryservices/Twitter: https://twitter.com/bethazor1Instagram: https://www.instagram.com/bethazor/Linkedin: https://www.linkedin.com/company/6315636/#retailleasing #commercialrealestateinvesting #retailleasingcoach #bethazor