For those that invest in, underwrite, and/or manage retail properties where you have tenants whose lease does not require sales reports (so that you can calculate Sales/SF, Occupancy Costs, and so forth) is there any other possible way to determine that info?
Sometimes, you can talk to a store manager who will brag about their sales and give you a verbal #, but barring that does anyone know of other methods to attain that info?
I was recently told about a Nielsen sales report (as in the same co. that does TV ratings) but I've yet to see what one of those reports looks like, how much they cost, does it really give you total sales volume by store, can you pull one report for an entire center (or is it by tenant)....etc. etc.
Does anyone have any other suggestions?
I'd appreciate any help!
Should I infer from the lack of replies that no one is touching retail any more???
Yes. Nobody anywhere in the world is investing in it any more. All retails reits and developers have closed up shop and called it a day.
Bud, this is like a black hole, I've been trying to figure it out for over a year.
Hoover's is a good place to start, you won't find anything but you might. If a small LLC within a publicly traded company, reading through their Annual Reports might show something but probably won't.
Basically you need to make friends with a manager to get it if you don't have access in the lease.
Thanks. Thats about what i figured. I'm of the opinion at this point that if they don't have sales reports for the major tenants (at minimum the ones with co-tenancy clauses tied to them) then its a pass for us.
Just way too much headline risk to jump in to retail w/o this type of info to make informed decisions.
I honestly have no idea if this would work or not, but could it hurt to reach out to the appropriate contact (regional manager?) at XYZ retailer's corporate and explain your situation and ask? At the end of the day the real estate changing hands shouldn't really effect the day-to-day operations of the store.
"Hey Tom, this is Bob, I am a real estate investor interested in acquiring a property leased to one of your stores. We were curious as to the strength of the sales at that particular location and were hoping you could help us out with some information. If not, no problem at all, but it never hurts to ask."
Easy enough to remain anonymous about the store in question until you know whether he would be helpful or not, and at the very least you might get a useful range of sales.
Hey, could be a terrible idea and your probably wouldn't get anything on paper anyway, but I have seen this happen when the buyer had a friend-of-a-friend relationship with a retailer's regional manager.
You have to have a pretty good relationship with the manager. They can get in deep shit for disclosing sales, especially to the owners of their real estate as it can weaken their position in negotiations.
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