COMMERCIAL RETAIL REAL ESTATE

Gary Lewis

Index Topic Page

Biography

Case Studies

Tourism/Casino: Forum Shops at Caesar’s Palace

Mixed Use Property: Houston Galleria

Distressed Property: Laguna Hills

What is Market Rent?

Retailer Models

Next Steps?

Questions Employers May Ask

Preparation & Tips

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Biography • 27 year career at Simon Property Group as Senior

Executive Vice President of Mall Leasing • Diverse range of projects

• Arhaus Board of Directors • CEO of GLA Real Estate

– The Broughton St Collection in Savannah, GA

• Ground up construction • Historic Districts and Mixed Use • Luxury/regional malls • Tourism/Casinos • Lifestyle centers • Renovations & expansions

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Biography

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Biography

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Think Outside The Box • Know your client

– Think like your client to understand their perspective • Know your marketplace • Know your competition • Protect your time and value others

• Mind set – Intellectual • Skill set – Experience • Creative set – Think outside of the box

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CASE STUDIES

Tourism/Casino Property Mixed Use Property Distressed Property

Tourism/Casino: Las Vegas Trade Area

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Tourism/Casino: Las Vegas Aerial

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Tourism/Casino: Forum Shops at Caesar’s Palace – Las Vegas, NV • The Forum Shops is one of the highest sales PSF shopping centers in the US driven by luxury tenant mix and retail

entertainment

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Tourism/Casino: Forum Shops at Caesar’s Palace – Las Vegas, NV

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Mixed Use Property: Houston Aerial • Highway access at major interchange, office buildings, residential, and retail

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Mixed Use Property: Houston Site Plan • Highway access and visibility • Ingress & egress

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Mixed Use Property: Houston Lease Plan – Floor 1 • Impact tenants • Merchandise mix. location, location, location

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Mixed Use Property: Houston Lease Plan – Floor 2 • Impact tenants • Merchandise mix. location, location, location

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Distressed Property: Laguna Hills Trade Area

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Distressed Property: Laguna Hills Site Plan • Great real estate located off I-5 at El Toro Rd. • Peripheral restaurants, office, hospital.

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Distressed Property: Laguna Hills Mall – Laguna Hills, CA

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Factors To Consider • Chasing good or bad real estate?

• Clearly define the new identity of the property • What is missing in the trade market? • Emotionally or financially vested?

• What is your realistic trade market? • Size of radius (1-3 miles vs. 5-10 miles) • Realistic market rent • Quality of competition • Quantity of competition • Critical mass. How much do you need? Can there be too much?

• Has the consumer base of the property changed? • Which direction is the residential market turning

– Single family/zero lot lines – Large residential tracks – Apartments 19

CASE STUDIES

QUESTIONS?

What is Market Rent?

Market Rent & Retailer Models

Retailer Models • Tenant liabilities

– Base Rent – Common Area Maintenance

(CAM) – Real estate taxes – Insurance – Promo

• Tenant income – Sales

• Occupancy cost drives the decision

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Retailer Models

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• Two level restaurant operator. Averages $3.0 mil/unit

Retailer Models • BE RESOURCEFUL • Negotiating with national, public retailer

– SEC filings • Average sales at $770 psf, average occupancy at 13%,

average store size at 3500 sf. • Average store ($770 psf x 3500 sf) does $2.7 mil • Average rent ($2.7 mil x 13% Occ) is $350,000

• Scenario

– The retailer projects your 2,800 sf store at $1.7 mil 24

Retailer Models

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• Avg Sls: $770 psf / Avg Occ: 13% / Avg Size: 3500 sf • Retailer projects your 2,800 sf store at $1.7 mil

Negotiation Topics

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• Radius restrictions • Exclusives • Length of term • Ancillary charges • Co-tenancy clauses • Kickouts • Percentage rent • Breakpoints • Overage rent • Lease Transfers • Right of first refusal • Favor Nations clause • Recapture of TA from

overage rent • Sales performance

dictates direction

What is Market Rent?

QUESTIONS?

NEXT STEPS?

Interview Process

Interview Process • Questions Employers May Ask

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1. Tell me about yourself.

2. What is your ideal job?

3. What are you passionate about in life?

4. What accomplishments are you most proud of?

5. Give me an example of your biggest professional challenge.

6. How will you contribute to my company? 7. What areas of improvement were identified in your last review?

8. How would your peers comment on your work ethic?

9. Why are you here? How do you measure success?

10. The ballroom question???

Interview Process • Preparation and tips

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1. Research the industry, company, and the person.

2. Highlight how your skill set is an asset to the company.

3. Speak the right body language.

4. Anticipate the interviewer’s concerns.

5. Prepare for common interview questions. - Ensure you answer in an articulate, logical, sequential manner. 6. Be ready for behavior-based questions. 7. Bring a copy of your resume to every interview.

8. Positive, pleasant, persistent, and passionate.

9. Follow up!

NEXT STEPS?

QUESTIONS?