Last month’s edition of our Monthly Newsletter was focused on leasing in general and how our systematic approach creates value for our Partners.
This month’s edition will expand on this approach by focusing on Key Leasing deals that continually drive traffic into our center. This, in turn, helps increase leasing velocity and ultimately will fill our shopping centers with productive tenants -- think of the ‘domino effect’.
In developing a comprehensive merchandizing plan for each of our centers we start with those Key Tenants to accomplish our plan of:
1) driving traffic into our centers which helps our existing tenants with increased foot traffic, 2) encouraging new tenants to locate in our shopping centers, and 3) increasing incremental rent numbers through heightened demand.
Over the last couple of weeks, we signed a number of these Key traffic-driver Tenants including: Starbucks @ Heritage Square, Planet Fitness @ Waynetowne, and we are in final negotiations with Chick-Fil-A @ Carlisle. All of these Key Tenants will substantially increase the income generated at each center as outlined above.
To illustrate the ‘hows & whys’ of these traffic generators we’ve listed a few interesting factoids for these three tenants:
Average Gym has 6,000 – 8,000 members
On average Gym members visit the gym 2 times per week
624,000 potential shopper visits per year from an average Planet Fitness location
Average Starbucks customer visits their store 16 times per month
On average each customer spends $8.69 per shopping visit
Average store sales were $833,224 in 2015
95,833 shopper visits per year
In 2015, the average store did $3.98 million in sales
Average customer purchase of $13.59
286,000 shopper visits per year
These Traffic Driver Tenants help ensure that more shoppers are visiting our centers, seeing and shopping at our other merchants within the center and attracting new tenants that want to be near these type of users.
Grocery Anchors are the key component to our centers; they consistently drive traffic to the center on a relatively non-cyclical basis. As is illustrated above there are other types of tenants that can also help drive traffic and be a key component to our overall merchandising plan.
Broad Reach’s systematic leasing plan works! We Create Value for our Partners, Properties and People.
Next Opportunity – Broad Reach Retail Partners Shopping Center Fund II
Focused exclusively on Value-Add Necessity Anchored Shopping Centers
Great Combination of positive cash flowing investments with upside potential
High Yield with Quarterly distributions
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, 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.
Thanks again for your interest and let me know if you have any questions.
Broad Reach Retail Shopping Partners