retail leasing retail leasing for community organizations institute for comprehensive community...
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RETAIL LEASING
RETAIL LEASING FOR COMMUNITY ORGANIZATIONS
Institute for Comprehensive Community Development
January 12, 2012
Larisa Ortiz Pu-Folkes
OVERVIEW CONTACTCASE STUDIES PROCESS
RETAIL LEASING
Overview
Why does tenant mix matter?
OVERVIEW CONTACTCASE STUDIES PROCESS
RETAIL LEASING
OverviewOverview
Positive correlation between
Store mix
Shopping density
Access
Results in
Shopper preference
Higher real estate values
Retail sales growth
Case Study
OVERVIEW CONTACTCASE STUDIES PROCESS
RETAIL LEASING
BACKGROUND: BASED ON LISC’S APPLIED RETAIL ATTRACTION TRAINING
CLIENT: NYC DEPT. OF SMALL BUSINESS SERVICES
PARTNER: JGSC GROUP
DESCRIPTION: FOUR PILOT SITES• Bedford-Stuyvesant Restoration Corporation, Brooklyn, NY• Long Island City BID, Queens, NY• Harlem Congregations for Community Improvement, NY,
NY• Women’s Housing and Economic Development
Corporation, South Bronx, NY
OUTCOME: 11 NEW BUSINESSES ATTRACTED TO DATESIGNIFICANT INCREASED CAPACITYOVER 215 BUSINESSES IDENTIFIED AS PROSPECTS
AWARDS: IDA DOWNTOWN ACHIEVEMENT AWARD
NEIGHBORHOOD RETAIL LEASING PROGRAM
OverviewRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE I
LOOK, LISTEN, LEARN
PHASE II
FIGURE OUT WHAT YOU WANT AND NEED
PHASE III
IDENTIFY AND SECURE TENANTS
PHASE IV
CELEBRATE AND DOCUMENT OUTCOMES
1. ASSESS THE DISTRICT AND BUSINESS MIX
2. ASSESS CONSUMER DEMAND
3. IDENTIFY OPPORTUNITY SITES AND RETAIL CATEGORIES
4. COMMUNICATE YOUR VISION
5. DEVELOP AND DISTRIBUTE MARKETING MATERIAL
6. IDENTIFY PROSPECTS7. MAKE THE CALL8. BE READY TO HELP
9. CELEBRATE THE DEAL!
10.TRACK PROGRESS, AND THEN KEEP GOING
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE I
LOOK, LISTEN, LEARN
#
Walk your district and observe the existing retail mix
Assess the physical shopping environment
Identify your traffic generators
Talk to those in the know
STEP 1: ASSESS THE DISTRICT AND BUSINESS MIX
Relationships:Cultivate relationships to ensure that you have a realistic and informed understanding of the local market.
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE I
LOOK, LISTEN, LEARN
Estimate consumer demand
STEP 2: ASSESS CONSUMER DEMAND
Determine trade area
Estimate leakage by category (leakage refers to retail sales lost by a community to businesses outside of trade area)
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE II
FIGURE OUT WHAT YOU WANT AND NEED
Develop an opportunity site inventory
STEP 3: IDENTIFY SITES & RETAIL CATEGORIES
Evaluate opportunity sites
Identify Retail Categories to Target
Consumer demand
Community preference
Size and configuration of opportunity sites
Relationships:Reach out to property owners. Find out what is realistic and keep track of vacancies before they occur.
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE II
FIGURE OUT WHAT YOU WANT AND NEED
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE II
FIGURE OUT WHAT YOU WANT AND NEED
Make the commercial real estate community aware of your targeted retail approach
STEP 4: COMMUNICATE YOUR VISION
Share your findings and vision with the stakeholders
Become a vehicle for your owners and brokers to promote vacancies
Relationships:In addition to property owners, brokers and retailers, get to know your local stakeholders, including government officials, and community board members.
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE III
IDENTIFY AND SECURE TENANTS
STEP 5: DEVELOP AND DISTRIBUTE MARKETING MATERIAL
Map of the district that clearly identifies major activity generators
Information about any incentives or resources for retail
Testimonials from merchants
Sales figures for your district
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE III
IDENTIFY AND SECURE TENANTS
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE III
IDENTIFY AND SECURE TENANTS
STEP 6: IDENTIFY PROSPECTS
Seek out prospects
Network, shop, and advertise
Get creative!
Keep a Prospect Database
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE III
IDENTIFY AND SECURE TENANTS
STEP 7: MAKE THE CALL
Conduct Prospect Outreach
Invite prospects on a Choreographed Tour of your District
Testimonials from existing businesses are an excellent marketing tool.
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PHASE III
IDENTIFY AND SECURE TENANTS
STEP 8: BE READY TO HELP
Play the mediator to negotiations
Be prepared with resources that will help tenants in their interactions with the landlord
Don’t be discouraged, getting to “yes” can mean hearing “no” multiple times
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
CELEBRATE AND DOCUMENT OUTCOMES
PHASE IV STEP 9: CELEBRATE THE DEAL!
A grand opening is an exciting recognition
Best way to build credibility and ultimately engage more property owners
Issue press release, invite local leaders, cut that bright red ribbon
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
CELEBRATE AND DOCUMENT OUTCOMES
PHASE IV
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
CELEBRATE AND DOCUMENT OUTCOMES
PHASE IV STEP 10: TRACK PROGRESS, AND THEN KEEP GOING
Have a system in place to measure success as well as failure
Sharing your success will provide your organization with valuable recognition
Rinse, wash, and repeat!
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
PARTICIPANT FEEDBACK:
“Before I was concerned with approaching property owners. I didn’t have the resources or know how to follow through.”
“We have established multiple new relationships, including property owners of 5-6 vacant spaces, and 4-5 brokers.”
“We are targeting smarter.”
“Brokers now know they have a partner in the organization has the capacity to understand the deal.”
“The training allows us to have intelligent conversations and be a real partner.”
The ProcessRETAIL LEASING
OVERVIEW CONTACTCASE STUDIES PROCESS
It’s not over. In fact, it’s never over.