Anybody here have experience with retail on the West Coast. I'm in MF development and a lot of the deals we are looking at now have some sort of retail component that is required, but I don't have a great source for retail comps (I have CoStar, but don't think its the best since everything is all over the place).
How do you all underwrite the retail portion of deals and where do you get your assumptions for rents and TI's? Haven't had too much luck with brokers on getting info.
Thanks for the help
Hi Stoo, whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:
Or maybe the following WSO members have something to say: d.aoude nbuch michael_holeman
You're welcome.
Chiming in since you didn’t get any responses here, no longer focused on retail but during my three years of valuation experience I specialized in triple net, ground leases and pad site projects.
Unfortunately there’s no easy answers here and the best data is what you’ll work up on your own. Are these areas which you are familiar with? If there is a specific region that your firm is targeting then I would drive around the immediate area of the site and start grabbing brokers numbers listed for empty spaces near you.
Call them up and build a relationship - tell them you are a developer who is looking to potentially build in the area and you would like to learn more. Allude to the fact that you may need representation if you move forward and ask about vacancies, your closest competition, what drives the market (big employers, colleges, etc). Always ask for who the biggest players are and if they have any other important contacts that you should speak with.
The reality is that almost in every market, city or even state depending on how dense you are there are 3-5 individuals who do nearly 80% of the deals. If you are truly looking to expand to that area, build a relationship with them and use them on deals so you always have an informational advantage versus your competition.
If you’re looking in Southern CA Westside reatail: Jay Luchs of NKF Houman Mahboubi of JLL
There are definitely others but those two come to mind. Kevin Shannon of NKF is huge too, but not sure if he focused on retail or not.
Also heard that Jeff Adkison of JLL is good, and he focuses on the Capital Markets side for developments in hospitality and retail.
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