Jerome Herman2 CIRB Presentation “Secrets of Successful Site Selection Techniques in Tight Real...

Jerome Herman 1

CIRB Presentation“Secrets of Successful Site

Selection Techniques in Tight Real Estate Markets”

Scott Griffin- Detroit, MI

(248) 752-1111 [cell], [email protected]

Jerry Herman – Cleveland, OH (216) 219-2161 [cell],

[email protected]

Marty Kotis – Greensboro, NC

(336) 601-000 [cell], [email protected]

Les Sax – Washington D.C.(703) 980-8988 [cell],

[email protected]

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Choosing a Real Estate Broker

• Qualifications of a good broker

• How do you find a good broker• What should the broker do for you

• How is the broker paid

Jerome Herman J.J. Herman and Associates Cell: (216) 219-2161

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Qualifications of a Good Broker

• Trustworthy/Honest– Integrity, Work Ethic, Confidentiality, Good Reputation– Representing you, not himself; who is going to do the work?

• Knowledge/Skill Set– Local Market Knowledge, Real Estate Experience, Restaurant

Knowledge, What restaurant deals have they done (How long ago? Did they represent the buyer/tenant or the seller/landlord)

– Creativity & negotiation ability– Knowledge of existing restaurants– Knowledge of what restaurants are expanding, contracting,

etc– Access to restaurant sales volumes

• Professional Affiliations– International Council of Shopping Centers, National

Restaurant Association, Council of International Restaurant Real Estate Brokers, Local Restaurant Associations, etc.

• Tools– Mapping, Demographics, Aerials, Market Studies, Support

Personnel, Digital Cameras, ScannersJerome Herman J.J. Herman and Associates Cell: (216) 219-2161

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How do you find a good broker?

• Referral from other restaurant companies• Look at trade organizations• Check with attorneys knowledgeable in the restaurant business

• Good restaurant real estate brokers in other cities

• Attend conferences like RFDC-MUFSO-The Restaurant Leadership Conference, International Council of Shopping Centers (ICSC) annual and regional conferences


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What Should the Broker Do?• Protect Your Investment

– Keep you from buying/leasing bad property– Tell you what you should/shouldn’t do

• Provide You with Market Information– Help you understand the trade area -- competition, retail areas, office

– Let you know who’s going where and why– Give you traffic counts, demographics, get you aerials– Map the area out for you

• Find You the Best Sites for the Money– Identify the listed and non-listed sites and Negotiate on your behalf

• Help You in Other Ways– Help you find Builders, Attorneys– Walk you through the entitlement process– Help prepare your corporate approval package


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How is the Broker Paid• Who Does the Broker Represent?

– Buyer/Tenant Representatives– Seller/Landlord Representatives

• Seller Generally Pays, but Buyer Guarantees Broker Payment

• Fee Ranges - Depends on Scope of Service


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Finding Sites in Tight Markets

• Look at All Possible Sites - Don’t Assume

• Build Excitement for Your Concept - make people want you, spread the word

• Use Tools - Maps, Aerials, Video• Keep Track of the Properties• Keep Track of Sellers, Landlords, Deals

Marty Kotis Kotis Properties Cell: (336) 601-0000

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Look at Everything• Choose a Submarket

• Don’t Assume!• Label an aerial with Retailers, Restaurants, other Users

• Identify all potential sites including raw land, underutilized properties, parking lots, and non retail


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Finding Sites - Where to Go

• Listed Sites - Sites with Signs• Unlisted Sites - No Sign but Great Site

– Contacting the property owner– Convince them to sell

• Area Brokers• Area Developers• Mailers / Press• Planning Departments & Government Officials

• Broker Should Do All This For You


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Generate Interest

• Get property owners and developers interested

• Send Site Search mailers to property owners, developers, brokers

• Get press coverage• Get people submitting sites to you


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Use The Latest Tools

• Aerials• Video• Mapping Programs• Property Ownership Database• Property Tracking Software• Contact Management Software


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Aerial Photos


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Aerial Video


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are needed to see this picture.

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Mapping


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Track your Properties• Owner and Broker - names, addresses, phone, email

• Tax Record Data - tax card, prior sales

• Packages on the Properties• Database or spreadsheet of comparative info - size, pricing, traffic counts, nearest intersection, have package, last conversation, status, date stamp all info

• Sort by Submarket and Site ID number


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Track People and Deals• Property Owners, Brokers, Developers, Govt Officials, etc.

• Use Contact Management Software:– All the vitals - name, address, email, phone

– When you talked to them last, what they said, prices quoted, when should you follow up again

– Letters, calls, emails tracked• Share the Information Across your Company - don’t duplicate efforts


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Traditional Site Selection

• Pads of Regional Centers• Pads of Power Centers and Strip Centers

• Highway Interchange Sites• Downtown CBD’s• Occasional end-cap locations

Les Sax Sax Realty Cell: (703) 980-8988

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Entering the Picture: Banks, Drug Stores, and

Junior Centers• Banks outbid everyone for prime sites

• Drugstores outbid everyone except banks for prime sites

• Junior Centers and supermarket gas station pads take other pads


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Entering the Picture: Mixed Use Projects and Town

Centers• Vertical projects with residential and office on top of retail-restaurants become popular

• Town Center “itis” infects suburban America

• Anti “Big Box” mania also infects suburban America

• Municipalities want vertical growth to enhance the local tax base


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Restaurants: Forced to accept non-traditional real

estate formats• Town Centers• Regional Malls/Lifestyle Wings• Office Building on the first floors

• Downtown CBD mixed-use projects


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Case Study:Washington DC

• Regional Malls reinvent themselves with power restaurants- Tysons 2 and White Flint Malls

• Mixed use projects-Proposed Leesburg, Virginia project with retail, office, residential and restaurants/retail

• Proposed North Bethesda Town Center• Parole Town Center-Annapolis, MD• Study of Tenant- P.F. Chang’s different formats in Washington D.C. and Baltimore


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Questions and Answers

Jerome Herman2 CIRB Presentation “Secrets of Successful Site Selection Techniques in Tight Real...

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