COMMERCIAL RETAIL REAL ESTATE. Gary Lewis

Size: px

Start display at page:

Download "COMMERCIAL RETAIL REAL ESTATE. Gary Lewis"

Jane Lynn Farmer
7 years ago
Views:

1 COMMERCIAL RETAIL REAL ESTATE Gary Lewis

2 Index Topic Page Biography Case Studies Tourism/Casino: Forum Shops at Caesar s Palace Mixed Use Property: Houston Galleria Distressed Property: Laguna Hills What is Market Rent? Retailer Models Next Steps? Questions Employers May Ask Preparation & Tips 2

3 Biography 27 year career at Simon Property Group as Senior Executive Vice President of Mall Leasing Diverse range of projects Ground up construction Historic Districts and Mixed Use Luxury/regional malls Tourism/Casinos Lifestyle centers Renovations & expansions Arhaus Board of Directors CEO of GLA Real Estate The Broughton St Collection in Savannah, GA 3

4 Biography 4

5 Biography 5

6 Know your client Think Outside The Box Think like your client to understand their perspective Know your marketplace Know your competition Protect your time and value others Mind set Intellectual Skill set Experience Creative set Think outside of the box 6

7 CASE STUDIES Tourism/Casino Property Mixed Use Property Distressed Property

8 Tourism/Casino: Las Vegas Trade Area 8

9 Tourism/Casino: Las Vegas Aerial 9

10 Tourism/Casino: Forum Shops at Caesar s Palace Las Vegas, NV The Forum Shops is one of the highest sales PSF shopping centers in the US driven by luxury tenant mix and retail entertainment 10

11 Tourism/Casino: Forum Shops at Caesar s Palace Las Vegas, NV 11

12 Mixed Use Property: Houston Aerial Highway access at major interchange, office buildings, residential, and retail 12

13 Mixed Use Property: Houston Site Plan Highway access and visibility Ingress & egress 13

14 Mixed Use Property: Houston Lease Plan Floor 1 Impact tenants Merchandise mix. location, location, location 14

15 Mixed Use Property: Houston Lease Plan Floor 2 Impact tenants Merchandise mix. location, location, location 15

16 Distressed Property: Laguna Hills Trade Area 16

17 Distressed Property: Laguna Hills Site Plan Great real estate located off I-5 at El Toro Rd. Peripheral restaurants, office, hospital. 17

18 Distressed Property: Laguna Hills Mall Laguna Hills, CA 18

19 Factors To Consider Chasing good or bad real estate? Clearly define the new identity of the property What is missing in the trade market? Emotionally or financially vested? What is your realistic trade market? Size of radius (1-3 miles vs miles) Realistic market rent Quality of competition Quantity of competition Critical mass. How much do you need? Can there be too much? Has the consumer base of the property changed? Which direction is the residential market turning Single family/zero lot lines Large residential tracks Apartments 19

20 CASE STUDIES QUESTIONS?

21 What is Market Rent? Market Rent & Retailer Models

22 Retailer Models Tenant liabilities Base Rent Common Area Maintenance (CAM) Real estate taxes Insurance Promo Tenant income Sales Occupancy cost drives the decision 22

23 Retailer Models Two level restaurant operator. Averages $3.0 mil/unit 23

24 BE RESOURCEFUL Retailer Models Negotiating with national, public retailer SEC filings Average sales at $770 psf, average occupancy at 13%, average store size at 3500 sf. Average store ($770 psf x 3500 sf) does $2.7 mil Average rent ($2.7 mil x 13% Occ) is $350,000 Scenario The retailer projects your 2,800 sf store at $1.7 mil 24

25 Retailer Models Avg Sls: $770 psf / Avg Occ: 13% / Avg Size: 3500 sf Retailer projects your 2,800 sf store at $1.7 mil 25

26 Negotiation Topics Radius restrictions Exclusives Length of term Ancillary charges Co-tenancy clauses Kickouts Percentage rent Breakpoints Overage rent Lease Transfers Right of first refusal Favor Nations clause Recapture of TA from overage rent Sales performance dictates direction 26

27 What is Market Rent? QUESTIONS?

28 NEXT STEPS? Interview Process

29 Questions Employers May Ask Interview Process 1. Tell me about yourself. 2. What is your ideal job? 3. What are you passionate about in life? 4. What accomplishments are you most proud of? 5. Give me an example of your biggest professional challenge. 6. How will you contribute to my company? 7. What areas of improvement were identified in your last review? 8. How would your peers comment on your work ethic? 9. Why are you here? How do you measure success? 10. The ballroom question??? 29

30 Preparation and tips Interview Process 1. Research the industry, company, and the person. 2. Highlight how your skill set is an asset to the company. 3. Speak the right body language. 4. Anticipate the interviewer s concerns. 5. Prepare for common interview questions. - Ensure you answer in an articulate, logical, sequential manner. 6. Be ready for behavior-based questions. 7. Bring a copy of your resume to every interview. 8. Positive, pleasant, persistent, and passionate. 9. Follow up! 30

31 NEXT STEPS? QUESTIONS?

305 MILNER AVENUE LEASE OFFICE SPACE

305 MILNER AVENUE LEASE OFFICE SPACE 1,673 to 27,484 SF Under $20.00 Gross Rent Built-out suites available for immediate occupancy Received the Certificate of Building Excellence for three years! LOCATION: AVAILABLE SPACE: North of Highway