Retail Tragedy and Triumph

Prescott retail commercial real estateNo, the dark moments of 2008 are not yet behind us. The Prescott and Prescott Valley, Arizona retail markets appear to be booming…emphasis on “appear.”

Looks can be, and often are, deceiving. Our local retail shopping centers we may be repeating history by overbuilding in a flat market that cannot sustain the economic demands of retailers.

Hearing the Giant Sucking Sound

Prescott and Prescott Valley are now two distinct retail markets with minimal consumer crossover. Frontier Village was Yavapai County’s first major retail mall. Prior to its development consumers shopped at what was then called “Ponderosa Plaza” located on Gail Gardner Way between Willow Creek Road and Iron Springs Road. At this point in retail history, Prescott Valley was still in a state of retail infancy.

As a result of the housing boom [Read more…]

Outside the Box Market Thinking

Think Outside the BoxMarket thinking is critical to commercial property owners. Thinking small is, well, putting it bluntly, an old paradigm and counter productive in today’s big CRE world.

Network largess is now a central key to lease marketing. Shrinking your exposure is deadly, while opening the marketing floodgates encourages multiple tributaries leading to more tenant activity, more LOIs and more executed leases.

In too many cases property owners have gotten twisted up in the pretzel of narrow representation, carrying the concept of going solo to new detrimental heights.

Learning over Lunch

A few years ago I met with a southern California owner at the Biltmore in Phoenix, Arizona who had invited me to lunch discuss and consider marketing his retail properties in cooperation with more than one broker each having and “exclusive” right to lease agreement.

Initially, the concept short circuited my concept of representation but as I listened to this seasoned owner my thinking began to change. Of course the so called “exclusive” was actually a modified arrangement where more than one listing broker consented to step aside in the event another procured an executed lease. Yes, the devil, as always, was in the listing agreement details and convincing multiple brokers to share a so-called “exclusive” listing seemed more than challenging.

The conversation broadened my thinking and opened me up to new representation blueprints that can help owners and add possibilities to a broker’s inventory.

The notion of broadening exposure in this way included many brokers working on the same property rather than simply one. The model began to have some appeal in an overbuilt market where owners require more, not less, tenant exposure and leasing opportunities.

The Big, Big, Big CRE World

With the advent of websites, blogs, YouTube channels with video sharing permissions, LoopNet, Twitter, Facebook, LinkedIn, Google+ and the myriad of other avenues available to owners, it’s my opinion that the power of the multiplier is already at work…and, therefore, why not harness this power?
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Battle of the Bulge – Buying Down the Bloat

bloatedWant to know what I think? There is not going to be some cataclysmic, spin-on-a-dime turn-around for small and medium commercial real estate owners. This time, like no other time, we are in a long haul climb up the cliff face of mount cash-flow.

We are in a kind of real estate battle of the bulge. We have too much space (the bulge) and not enough users to quickly alleviate the bloat of vacancies. It is true, we have seen some spurts and sputters, which have caused some to optimistically think and even say, “The recession is over, we’re coming out of it.”

Everything I read, hear, view and all of my experiences at the street level are telling me the battle of the bulge is not over and the trick of trade for survivors is the ability to buy cash flow and to buy it now. Yes, you heard it correctly. Owners need to change their posture and assume a position of cash flow deal makers.
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“Market Float” – Tip #114

Owners are experiencing significant leasing pressure and the market is beginning to pinch their revenue stream. In some cases the pinch is like a kink in a water hose. I’m developing float strategies for clients. It looks like another 12-24 months before we get back to shore. Here’s tip #114:

tip 114

Donald Teel is a Senior Associate with Arizona Commercial, an Arizona commercial brokerage and property management firm. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel