In 1995, there were approximately 1,800 regional malls in the US. At that time, ICSC (the International Council of Shopping Centers) published articles and held sessions at conferences addressing the then-current predictions that 25% of those regional malls would close, and there was a need to find alternative uses for regional malls. A few years… Continue reading The “new” reality
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!
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
We were working on a property this week that had a newer 20,000 sf fitness center on a gross lease at an incredibly low rate per square foot. It wasn’t the rate per square foot that bothered me – it was at the back of the center not fronting on the main parking lot. It… Continue reading This should bother you
(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.
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?
Two or three weeks ago, we were working on a portfolio acquisition. There was an outparcel ground lease tenant that had the right to purchase its premises if the landlord ever sold the property. Our client asked the seller for the tenant’s release from its option to purchase the parcel. The seller replied that it… Continue reading “That’s standard” is not a good enough answer.
For over 30 years, I have had the opportunity to work within some of the most well respected companies in commercial real estate. Each has its own way of doing things – their own sets of processes and procedures. I have heard comments ranging from “No one does it as well as we do,” to… Continue reading Learning and improving throughout your career
“Ambitious men do not ask questions for fear their infallibility will be challenged” – Washington (or John) Roebling My apologies to David McCullough who wrote The Great Bridge about the building of the Brooklyn Bridge for not even knowing whether it was Washington or John Roebling who gave us that awesome quote above. But, whether… Continue reading Why you should be at least slightly conversational in accounting, finance and lease administration
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