GREATER TAMPA ASSOCIATION OF REALTORS RETAIL Real Estate GTAR 2017 Education Series GREATER TAMPA ASSOCIATION OF REALTORS RETAIL Real Estate Tina Marie Eloian, CCIM July 26, 2017
RETAIL IS ALL AROUND US… Channelside…Ybor City…The Heights…South Tampa…… Retail is EVERYWHERE…
What is Retail?
Types of Retails…
Why Chose Retail?
Where is Retail Going?
TRENDS FOR FUTURE RETAIL E-commerce is Hot! Target Surpassed Walmart & Amazon with Online Sales by 34% in 2015. Competitors forced to invest in e-commerce! Virtual Reality is on Fire! Developers virtually show properties before built. Spaces can be virtually drawn and changed. Retail Stores can let consumers “try on” gear and items virtually to see how it works and feels before buying…. Virtual Reality will change Retail as we know it…. Said to be an $80 Billion Dollar sector by 2025.
AMAZON PUBLIX WALMART
WALMART AND THEIR FUTURE Walmart is closing 269 stores globally, including 154 in the U.S. Walmart will focus on e-commerce WHY? WHAT DOES THE FUTURE HOLD FOR WALMART? FOR THESE SITES?
Gross / Modified Gross Lease Triple Net Lease (aka NNN) RETAIL ::: LEASE TYPES Full Service Gross / Modified Gross Lease Triple Net Lease (aka NNN) Percentage Lease
PSF & TYPE OF LEASES Price Per Sq. Ft- $18.00 Triple Net 4,000 SF x $18.00 psf = $72,000 Yearly Rent Due or $6,000 Month plus applicable Sales Tax. Triple Net Lease= Taxes $10,000 Year- Insurance $6,500 Year- CAM Expense $4,800 year = $21,300 Year/Total Expenses
Retail: Terms YOU Need to Understand and Handle! New vs. Relet vs. Sublet Vacancy/ Vacancy Rate Due Diligence Zoning vs. Use Code Cash Flow Cap Rate APOD
Tenants/Cam/PSF/Cap/Vacancy LANDLORD/OWNER/ LANDLORD REP: Potential Tenant: Convenient Store? Drycleaners? Detail Shop? Urban Type Restaurant/ Coffee Shop? Antique Shoppe? CAM? (Common Area Maintenance)– Real Estate Taxes, Insurance/Maintenance Was there a Vacancy Rate factored in the PnL? PSF???CAP??? (Price Per Sq. Foot)- Based on Area & Market/// how strong is the market? What is the going cap rate if leased out / based on price?
Due Diligence is Everything… Do Your Homework Finances- Where are they coming from? Research Area Demographics Know Your Target Market Traffic Count Property Inspection Interior Build out/ Exterior Signage Parking/ Ingress Egress Check the Zoning & Use Environmental
CAP RATE= NOI/ Sale Price Annual Property Operating Data CAP RATE= NOI/ Sale Price
SPECIALIZING IN RETAIL – Why is Specializing so Important? $$$ You Know it… You Own it! Know Your Specialty! Know the Area inside and Out! How did I focus on this type of CRE? Leasing led to Investments and Investments led to Leasing. In a Loop What type of Retail CRE do I focus on? Investment and Leasing
OBSTACLES IN RETAIL SPECIALIZATION? Keeping up with the Industry/econ. Retail Changes Landlord/Ownership Changes 3rd Parties monopolizing CRE Other Brokers Not being educated
Who were/are my Mentor (s)? Dr. John Eloian Booky Buchman Joseph Capitano Sr. Jack Shiver These Entrepreneurs took anything and made it into Something!
PICK YOUR SPECIALTY and go Rock it! Have a Great Rest of the Summer!