A key component for Broad Reach Retail Partners, as a Value Creation Company, is our ability to increase the income stream of shopping centers through leasing vacant space. Over the years, we have had tremendous success on the leasing front. 2016 is no exception at just over the half way point we have competed over 48,374 square feet of new leasing deals, and have another 57,906 square feet of leases in various forms of negotiation. In total, this will increase the Net Operating Income of the portfolio by $2.02 million, at a 7.5% cap this results in $26 million increase in value in the portfolio.
Key to Successful Leasing One of the core reasons for our success on the leasing side is that we apply a very systematic approach to leasing in each of our centers. Below is a basic overview of our process:
Broad Reach Retail Partners Keys to Leasing
1. Understand each market our centers serve.
o Demographic Evaluation – who is the shopper and what do “they” need?
o Void Analysis - What type of goods and services are not in the Market?
o Complimentary Tenant Mix Analysis – Who is in the center and what Users will benefit from locating close to these types of tenants?
2. Develop a comprehensive User Category list for each center that meets the needs of the community.
3. Systematically populate the Use Category with specific Tenants, comprised of National, Regional and Local concepts.
4. Pursue these Tenants through direct solicitation, targeted marketing and social media.
o Employ a consultative approach by sharing our research to show why there is a need for the goods or services they provide in that specific community.
o How this need will generate productive Sales/Profits for the Tenants that locate into our centers.
This approach allows Broad Reach to procure new tenants that meet needs within a community and that have a synergistic relationship with the other tenants within the center. This type of systematic approach to leasing has yielded strong results and can be applied in any type of necessity oriented shopping center. Fund II Update
Raise continues to go well
To date we have commitment for $18 million.
We are on target for our 1st close in November ‘16.
We will be in NYC, South Florida, Chicago and LA in the coming weeks. We would be delighted to meet with you on any of these trips.
Based on the current velocity of fund raising activity, we are confident that the offering will meet or exceed the Fund goals.
If you have not already done so, please return your fully executed document as soon as possible so you don’t lose your ability to be part of Broad Reach Retail Partner Shopping Center Fund II.