1 / 12

CD Supplemental Chapter Retail Property Analysis

CD Supplemental Chapter Retail Property Analysis. Major Topics. Retail Property Types Typical key retail lease terms Factors in Retail Property Demand and Supply The Evolution of Malls and Retail Formats The Relationship Between Sales and Rents The Impact of E-commerce on Shopping Centers.

gwydion
Télécharger la présentation

CD Supplemental Chapter Retail Property Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CD Supplemental Chapter Retail Property Analysis

  2. Major Topics • Retail Property Types • Typical key retail lease terms • Factors in Retail Property Demand and Supply • The Evolution of Malls and Retail Formats • The Relationship Between Sales and Rents • The Impact of E-commerce on Shopping Centers “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  3. Introduction • Retail is the most dynamic of the property types • Demand for retail is a function of local household purchasing power • Retail space growth has been much more than population growth in USA • Retail space in an area will roughly approximate the annual growth in population plus the growth in income “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  4. Capital Pushed Supply instead of Demand Pulled • Indicators of demand • Sometimes in retail sector the local market analysis is ignored in favor of fulfilling capital market commitments – “Wall Street Push” • Capital pushed supply is based on demand generated by a funded tenant “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  5. Retail Property Types Strip Centers Community or Neighborhood Center Regional Malls Super Regional Malls Lifestyle Centers Specialty Centers Power Centers Factory Outlets “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  6. Key Retail Property Lease Terms • Base Rent • Percentage Rent • Break Point • Pass Through Expenses “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  7. Sales Vs. Occupancy Expenses • What a tenant can pay to occupy space per square foot is a function of: • Total Sales per square foot • Profit Margin on each sale “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  8. General Retail Trends 1. Consolidation of retail tenants and importance of “brands” 2. Economies of scale that have eliminated the local “Mom and Pop” tenants 3. The growth of lifestyle centers 4. The growth of e-commerce “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  9. The Web Supply Side of Retail • Products which are well suited to web initiated distribution: • Brand names and with known quality • Homogeneous products • Unique products • Highly customized products • Products benefiting from disintermediation “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  10. Mall vs. Warehouse • What is the advantage of physical compared to virtual space? • Instant consumer gratification • The introduction of new products • Visual presentation • Consumer examination and testing product quality • Relationship building • Consumer profile information collection • Cross marketing • “Back room” or kiosk sales • Information assistance in locating product “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  11. The Traditional Rent Model • Higher rent too risky for tenant • Landlord gets incentives that align with tenants interest • Base rents are lower for tenants with higher % rents “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

  12. END “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

More Related