Retail_CREGuy

#retwit You know why buyers are always looking for off market deals? Because they can get those deals for less than they’re worth because they aren’t being marketed to find the highest bidder. Usually the sellers are duped by the thought that they may be able to save a few points on a commission. Why do people do this?

Seems legit:

A little bit of radio silence may be in order… IYKYK

Yes the fastest way to settle this would be to ask the tenant with the restriction, but we all know what that answer is (or at least what it is now and what it will cost to change that). Luckily this one has enough differentiation, AND a sales threshold of 30%, so there’s a pretty big buffer here.

@Retail_CREGuy To a tenant - Absolutely! To the Landlord - Never!

Sometimes, when you work in Retail CRE, you get to do fun things like determining whether a pita is a sandwich or not. IYKYK… #retwit

@RetailDevDude Is a tortilla bread? Anything made with flour? Burgers? Hot dogs?

@Retail_CREGuy In the eyes of a tenant wanting the exclusive, ANYTHING with bread must be a sandwich!

Is a Pita a Sandwich?

@NUCLRGOLF That’s not just any golfer, that’s former Longhorn QB legend Vince Young!

🏬🏌🏻‍♂️Would you attempt this shot? “That’s right at it!!!” 😲 (Via: wyatt.messmer/IG)

PSA to all Franchisors - You should be selecting an exclusive broker in each market to act as your Tenant Rep. Do NOT leave it up to your Zees. Most of them won’t be able to properly vet potential brokers. They may engage multiple brokers, their resi cousin/buddy, etc. or no broker at all. This will ultimately result in lost deals, poorer site selection, a disjointed leasing process, and ultimately reflects poorly on your brand and will hurt your brand and Franchisee’s success. There is no reason not to be selecting representation at the corporate level. Doesn’t matter if your franchisee’s complain that they want to use their old frat brother, or if it seems like a headache for you to take on, I promise you it’s the best way to operate your RE strategy. You need consistency and competency in what is ultimately one of the most important (arguably THE most important) parts of your company’s growth. #retwit

@investing_law Generally speaking (law or not) if where you went to school is still high on your list of qualifications or accomplishments after the age of thirty, you aren’t that good at what you do and/or haven’t had much success… **ducks**

I used to obsess over what ranking my law school was. It was everything! 😬 I now realize I don't even remember what law school my excellent associate went to. 🤷‍♂️

#retwit Is it just me or is it tacky to send an email blast or post a promoting a well known Tenant entering a market if you’re the leasing broker, with no mention of your role and no mention of a Tenant Rep? Especially when the deal had to be brought to you by the TR? Essentially implying that you’re solely responsible for making the deal, and that you represent a client that you don’t represent. Also inappropriate to make the announcement prior to the Tenant doing so themselves… Maybe IATA here, but failing to give appropriate credit is misrepresentation.

I can’t stop laughing at this….

Being 3rd on the upgrade list to first class on Delta with three open spots available and waiting for it to clear is like being on the cut line in a major championship. What a sweat! #icsc #retwit

@TheDukeofDirt @imrichardfertig @JWurzak Will be back in July, can’t wait! One of my favorite places in the world.

@cre_cole Club Sealy for me on Tuesday night

What are the best Tuesday night parties in Vegas?

@RetailDevDude @ShlomoChopp It’s like athletes stopping mid-action to complain to the refs instead of focusing on the blocking and tackling. You have no control over the refs (or rates) so just adjust your play and get back into the game.

@ShlomoChopp Yeah, when did everyone in #CRE become obsessed with the daily changes in the 10-year instead of focused on leasing and operations?

Real estate is collapsing because treasury yields have become more important than leasing.

@DeveloperQuirks @SethLaceyCRE Why does X seem to create more opportunities than LI? Is it because LI is too formal? Not sure but it seems like people are much more open on here than LI. 🤷‍♂️

I love this app. Used correctly it can be a great tool. I needed help in Pennsylvania on a retail site and my first thought was who do I know? @SethLaceyCRE came to mind, we met on X. He did what I needed and we are working on a deal. If you need help in PA he’s your guy.

@ItsKasum @ICSC Great thread and many of these I do myself as well. Like most things in life, the amount you get out of ICSC tends to be directly proportionate to the work you put into it.

With @ICSC Las Vegas coming next week, I wanted to share a few non-conventional tips that have allowed me to have an incredibly productive show the last few years...other than "wearing comfortable shoes ect" 🧵 👇🏻

One clarification above - asbestos isn’t going to be an issue on any DT/FD deal that’s been done in the last decade. Obviously first gen boxes aren’t an issue. For FD/DT backfills, they do a full environmental on all sites and require the LL to remediate before they’ll take possession.

I would like to give a word of caution to CRE investors. Be extremely careful when considering that next dollar store deal. This industry has been, and will continue to be, impacted severely by the following: - Inflation - Theft Inflation Inflation is not necessarily a 'bad' thing for a consumer businesses. In fact, it can lead to substantial increases in revenue and income. As many are experiencing, however, this is not true across many businesses. We are experiencing a period of increased inflation, which is forcing consumers to think more carefully about their purchasing decisions. Everything is getting more expensive, but where do consumers decide to spend their dollars when there are fewer and fewer left? A critical component of this answer is 'Brand Power'. Companies with stellar brands (e.g. Apple, Coke, Chipotle, etc.) have substantially more flexibility to increase prices, whereas unbranded products have commoditized pricing. In other words - strong brands can set their prices, and commoditized products/brands have to compete against the lowest prices in the market. Inflationary periods highlight how important this truly is. From what I have seen, Discount/Dollar Stores (e.g. Big Lots, 99 Cent Store, Dollar General, Family Dollar) don't really have brands that afford them pricing power; they do, however, have 'captive' audiences, which creates an interesting dynamic. In short - they have company names, but I do not see that translating in a meaningful way into pricing power. Hence, they are competing on price, in an environment where costs are skyrocketing. This is tough. Theft Despite the prelude above, discount/dollar stores are still generating operating profit across many stores if we exclude a major expense: theft. Theft has skyrocketed across the country and, particularly, in states like California which have minimized the consequences for theft. Big Lots closed down an unbelievable swath of their portfolio located in California. I asked them why, and the answer blew my mind - "we're losing 30% of our revenue to theft". I'm not sure if that figure is actually accurate because it would be astronomical, but the figure did come from the most senior people at the company, so I do give it weight (at least for directional purposes). So what we're watching is an industry burning on both ends - inflationary pressures with limited pricing power (in my opinion), and theft concentrated against the most vulnerable stores (discount/dollar stores). My thoughts? If you want to purchase a discount/dollar store - don't. These buildings are always the most bare, and basic improvements you can imagine. They are often riddled with asbestos, and have insufficient utilities (e.g. power/gas). The re-tenanting costs will be substantially more expensive than you think unless you are lucky enough to lease it as-is. These Tenants will spend the least amount of money as possible when doing building improvements because they are always ready to go across the street to save a few bucks on rent. The rent escalations in these dollar store deals is also unfathomable. Many have zero rent increases, and others (if you're lucky), may raise their rent 5% every 5 or 10 years. With respect to Real Estate site selection - many of these newer stores are targeting C locations for retail. They simply want the cheapest rent possible, and act accordingly. In today's market, a vacant retail building needs to be an A / B location to survive. The correct acquisition price is the cost of improvements minus the cost for re-tenanting (lost rent + carrying costs, TIAs, commissions, Landlord work, etc.). I would not purchase these assets based on their cashflow / cap rate. Frankly - I have never seen a cashflowing dollar store deal that I thought was worth the price 🤷‍♂️

@PeterLBlock Yes in very rare circumstances it can be the right strategy. However, most of the time when I see an unpriced listing, it’s not one of those instances. Might as well just auction it if that’s your listing strategy.

@Retail_CREGuy there are situations, limited ones where unpriced is called for. I have some 30+ listings and 1 was purposefully unpriced. We knew people would value it differently and wanted the demand. Had deal in less than a week.

To all “unpriced” listing brokers - Is it laziness or incompetence that keeps you from valuing an asset accurately and actually putting a price on it? #cre #retwit