Malls · Retail leases · Shopping Center · Uncategorized

Squeeze another 353 sf out of that space!

This past week, we had a call with a long term client to review the results of a lease audit. Typically, it is the accounting people, perhaps some accounts receivable people and occasionally asset management. We review additional historical billings and expected increases to cash flow. But, this week was a little different, it was… Continue reading Squeeze another 353 sf out of that space!

Malls · Retail leases · Shopping Center · Uncategorized

Distorted sales and sales audits

Over the past 2 months, there have been a number of stories about tenants “distorting” sales including this one in Shopping Centers Today – https://www.icsc.org/news-and-views/icsc-exchange/tenants-should-include-more-internet-returns-in-reported-sales-simon-says It is almost presented as a “breaking news” type item, but this issue, including internet returns and its technological predecessor, catalog returns, has been an issue as long as tenants… Continue reading Distorted sales and sales audits

commercial real estate · Malls · Retail leases · Shopping Center · Uncategorized

The “backdoored” exclusive

Exclusives, kickouts and cotenancies are typically the big three non-financial covenants that have to be confirmed on an acquisition because, along with the cash flow of the property, they have such an impact on value. More often than not, these provisions are fairly obvious in a lease, But, sometimes they are buried. This past week,… Continue reading The “backdoored” exclusive

commercial real estate · Uncategorized

The physical embodiment of the last real estate recession is now gone … and it is kind of sad.

(A little non-lease administration but still real estate related blog for this week) Having been in retail real estate since 1987, I have seen my shares of ups and downs. However, in the early through mid 2000s, transaction volumes were through the roof, and I had forgotten the rule about what goes up also goes… Continue reading The physical embodiment of the last real estate recession is now gone … and it is kind of sad.

Malls · Retail leases · Shopping Center · Uncategorized

Are your tenants still contributing to marketing?

I got in to the industry in 1987. At that time, there were still plenty of 10-30 year old leases still in effect. So many of those leases had requirements for tenants to participate in a merchants’ association (usually at some initial nominal rate with CPI increases). The tenants would control how those funds were… Continue reading Are your tenants still contributing to marketing?