What are Retailers looking for? How can I prepare my neighborhood?

Urban Retail Solutions Conference

City of Cleveland

Seminar Objective

Educate community stakeholders regarding the retailer site selection process. To assist community development organizations with the retailer solicitation process.

Retail Seminar Overview

1. Macro Level Real Estate Decision making

2. Micro Level Real Estate Decision making

3. Marketing strategies and the “Perfect Package” to solicit retailers

4. Active retailers

5. Negotiating with national and regional retail tenants

6. Q & A session

CBRE | Page 4

MACRO Level Real Estate Decision Making

Understanding the Trade AreaDefine the trade area

• Geographic Drive Time

• Demographic• Socioeconomic Heat Map

• Location analytics

Define the anchor • Benefits provided• Retail beneficiaries

Spatial maximization EWC

• Radius restrictions• Existing retailer locations

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MICRO Level Real Estate Decision Making

Site Specific UnderstandingPhysical Characteristics

• Layout and frontage• Visibility • Signage• Parking

Consumer shopping patterns• Pedestrian and vehicle traffic counts• What side of the street am I on• Near corner / Far corner

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Marketing Strategies

Introduction to Real Estate ResourcesThe online commercial listing services used by the public and the brokerage community include;

Retail real estate periodicals-National/International • SCT- Shopping Centers Today• Shopping Center Business• National Real Estate Investor• NRF- Stores

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Marketing Strategies

How do I find national retailers and the person to contact regarding real estate site selection?

• Trade Dimensions- Retail Tenant Directory• Chain Store Guide- Leading Chain Stores• Retail Lease Trac- Internet Based Directory

How do I find local retailers and the principals’ name?

• Crain’s Cleveland Business-Small Business section called Grand Openings

• Cuyahoga County Auditor Website- Vendor Licenses • Call the store

CBRE | Page 8

Retail Lease Trac Example

Parent Corporation:

Supervalu, Inc.11840 Valley View RoadEden Prairie MN 55344

Tel: 952-828-4000Web: supervalu.comFranchised: NoPublicly Traded: Yes

Comments: Save-A-Lot is the nation's leading hard discount grocer operating nearly 1,100 locations across the US & Caribbean and is a wholly owned subsidiary of SUPERVALU.

Contact Information:

Mr. Bob Ferratto(Title) Senior Development Manager, East100 Corporate Office DriveEarth City/St. Louis MO 63045

Tel: 314-592-9472Fax: 314-592-9619Email: bob.r.ferratto@supervalu.comAlt Email: realestate@save-a-lot.comWeb: supervalu.com

Comments: IL (South-Western), KS, MO, AR - Works with these primary banners: Acme/Cub/Farm Fresh/Hornbacher's/Shaws/Star/Shoppers/Shop 'n Save/Save-A-Lot. Submit potential sites at: save-a-lot.com/own/real-estate-opportunities/submit-a-site or visit us at save-a-lot.com/realestate or contact us at 314-264-7854 or realestate@save-a-lot.com.

Demographics:

Minimum Required Population: 20,000Average Household Income: $40,000

Desired Customer Base: High percentage of families with children.

Other Comments: Population of at least 35,000 in the primary trade area, 20,000 in rural areas. Median household income of $40,000 or less. 

Facility Requirements:

Current Number of Stores: 1,170

(Desired Number of Stores)In 12 Months: 30In 24 Months: 60

(Desired Square Footage)Minimum: 10,000 sq. ft.Maximum: 20,000 sq. ft.

Desired Land Acres: 2

Desired Co-Tenants: Value-oriented retailers.

Comments: Sites zoned to allow grocery. Existing inline retail space preferred. Excellent line of sight for visibility. 5 parking spaces per 1,000 sq. ft. Retrofit or ground up sites. Receiving dock adequate for 53 foot semi-trailers.

Desired Facility Types:

Free Standing, Neighborhood Strip Mall, Regional Strip Mall, Special Strip Mall

Contact's Representation (United States):

Arkansas, Illinois, Kansas, Missouri

CBRE | Page 9

Cuyahoga County Auditor Vendor WebsiteView printable version

Licenses Issued from 6/2/2013 thru 6/8/2013

 Vendor Name / AddressDBA / Type of business

Issued Code

ANTONIO RAY ELLIS JR.1973 E.55TH - IN REAR, CLEVELAND OH 44103

KRAM & KRAM TOWING VEHICLE TOWING 

6/3/2013  488410 

C & J'S GROUNDSKEEPING, LLC.18501 ALEXANDER RD., WALTON HILLS OH 44146

 LANDSCAPING & LAWN CARE 

6/3/2013  561730 

DARLENE MARIE PETERS7015 STADIUM DR. APT 4, BRECKSVILLE OH 44141

GRANDS II FLORIST 

6/3/2013  453100 

GERALD M. SPEIDEL3162 W 88TH, CLEVELAND OH 44102

GMS LANDSCAPING LANDSCAPING & LAWN CARE 

6/4/2013  561730 

BRYANT'S COMPLETE AUTO SERVICE, LLC.4720 BROADWAY AVE., CLEVELAND OH 44127

 AUTOMOTIVE REPAIR SHOP - GENERAL 

6/5/2013  811111 

EXCLUSIVE TOWING AND AUTO LLC1615 ELBUR AVE, LAKEWOOD OH 44107

EXCLUSIVE TOWING AND AUTO TOWING 

6/5/2013  448410 

JARMEL JACOBS6114 WOODLAND AVE, CLEVELAND OH 44104

SINSATIONS GENERAL MERCHANDISE 

6/5/2013  452990 

JEHAD WAHDAN9109 DENISON AVE, CLEVELAND OH 44102

D. SPOT CELLULAR ELECTRONICS GENERAL 

6/5/2013  443100 

LISA A. HAIRSTON1842 BURNETTE AVE., CLEVELAND OH 44112

SWEET DROPS FROM HEAVEN GENERAL MERCHANDISE 

6/5/2013  452990 

NEXT LEVEL AUTO DETAILING, LLC.7960 YORK RD., NORTH ROYALTON OH 44133

 AUTO DETAILING 

6/5/2013  811111 

6/2/2013 - 6/8/2013

CBRE | Page 10

Marketing Strategies

Commercial Real Estate Brokerages with a retail focus in Northeast Ohio• CBRE, Inc.• The Goodman Group• NAI Daus• Colliers International• Kelly & Visconsi• Chartwell Group• Arnold J. Eisenberg• Kowit & Passov

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Marketing Strategies and the Perfect Package

The BASICS• Property owners should have a brochure or a one

page information sheet for the property to email or fax upon request

• Professional property signage is recommended

• Exterior should have no visible deferred maintenance

• Interior spaces should be free of debris

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Marketing Strategies and the Perfect Package

BEST PRACTICES• The most successful owners utilize multiple

marketing mediums Internet Property Signage Newspapers Periodicals Brokerage firms Direct mailings

• Affiliate with organizations International Council of Shopping Centers Chambers of Commerce Philanthropic

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Marketing Strategies and the Perfect Package

The PERFECT PACKAGE• National retailers look at thousands of locations

annually• Real estate directors must submit “packages” to a

committee or a decision maker for final approval• The Perfect Package provides the real estate

director with all the information he or she needs to submit the site for consideration for a new location

• Some real estate directors are compensated with bonuses by the number of new locations that open during a given period of time

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Marketing Strategies and the Perfect Package

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Marketing Strategies and the Perfect Package

The PERFECT PACKAGE • Name and/or address of shopping center including

city, state, and zip code• Site plan• Floor plan• Tenant roster• (1,2,3 or 1,3,5 mile) Demographics• Traffic counts• Location map• Parking ratio• Asking rent• Triple net charges• Photographs of the property

CBRE | Page 16

Active Retailers

Giant Eagle Aldi Save-A-Lot Family Dollar Dollar General Dollar Tree/Deals Big Lots Advance Auto Parts Autozone O’Reilly’s

Jimmy John’s Anytime Fitness Fitness 19 Planet Fitness Golds Gym 24-Hour Workout Factory Revol Wireless Key Bank Gorman’s Dick’s Sporting Goods

CBRE | Page 17

Negotiating with National and Regional Tenants

Understanding their ProcessAsk questions during the initial communication

• Prototypical size and minimum dimensions• Proposed timing• Internal approval process• Special Requirements

The Letter of Intent and Request for Proposal• What are they?• How are they different?• Why are they used?