Western Real Estate Business

MAY 2018

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

Issue link: https://westernrealestatebusiness.epubxp.com/i/978056

Contents of this Issue


Page 62 of 66

60 • May 2018 • Western Real Estate Business www.REBusinessOnline.com initial three years of planning and leas- ing. This phase typi- cally involves key players, such as the developer, architect, interior designer, contractor and com- mercial real estate broker. Each team member provides expertise that needs to be considered on the front end to enhance the developer's dream, and ultimately bring the dream to life. A broker can provide assistance with the design of the ground-floor retail and restaurant spaces to en- sure a quick lease-up when complete. Commercial brokers understand the dynamic retail landscape. This may include the current and future tenant expansion goals within a particular submarket, transportation patterns of customers in a given area and what the future customer base is anticipat- ed to look like over the next several years. All of this knowledge is criti- cally important to incorporate early on in the process. Successful project partnerships of- ten include the broker's consultation on mechanical and technical delivery conditions of the commercial spaces to attract the desired tenants to that space. A broker can offer advice on the best way to lay out a retail or res- taurant space, including the size of each commercial space and where the cooking shafts, plumbing, electri- cal and grease receptors should be lo- cated. Brokers should also be able to guide the architects on design in terms of the functionality and flexibility fit for each type of tenant in the future. Whether it's a coffee house or fast- casual restaurant, boutique retail store or anchor tenant — each tenant has its own unique and specific requirements that a broker can expand upon. An experienced broker can listen to the developer's design team and share best practices for obtaining the desired retail tenant mix. He or she will look at the overall market trends and use those insights to build the commercial space for future custom- ers in the area. This enables a broker to seek out the desired tenancy based on current data with the flexibility to attract different tenants as the market evolves. This place-making approach may involve co-branding a project with retail and restaurant anchors as part of the overall identity. They can also weigh in on whether it is suitable to blend local and regional tenants with well-recognized national brands. Brokers also recognize the need to plan for the best exit strategy based on a particular developer's business plan, which could include an immedi- ate sale, five- or 10-year hold or legacy asset as part of a family trust for de- cades to come. Brokers become known as suc- cessful "market-makers" (and even "tastemakers") when they share their expertise with not only ownership, but with neighboring tenants and the surrounding community. As de facto community ambassadors, brokers must be intimately familiar with the neighborhoods where they work, be able to cater to the demographic cur- rently living and working in that area, and predict future demand. Areas where this has been done successfully in Los Angeles include Abbott Kinney in Venice, Downtown Culver City, Downtown LA's South Park district and Hollywood. As a general rule, the earlier a de- veloper brings a qualified commercial real estate broker into the acquisition and design phase, the higher the proj- ect's probability for success. A broker can help mitigate design issues after completion and ensure a greater num- ber of tenants compete for space at a higher rental rate, all of which can yield higher returns for the client. Lee Shapiro, Executive Vice President, Kennedy Wilson in Los Angeles VERTICAL MIXED-USE DEVELOPMENT, SMART DEALMAKING START WITH SAVVY BROKERS MIXED-USE from page 1 Shapiro The Fifty Five Fifty, a luxury apartment community named after its address at 5550 Hollywood Blvd., boasts iconic views, premium amenities and retail options just below residents' doorsteps. Oceanwide Plaza offers one of the city's largest private resort parks, luxury retail and culinary experiences at the Collection at Oceanwide Plaza in Downtown Los Angeles. Local team, nationwide access With Wells Fargo Commercial Real Estate, you get the local expertise of a leader along with a platform of products and services to help make sure you're on the road to success. Learn more about how we can work together to move your business forward at wellsfargo.com/realestate. COMMERCIAL REAL ESTATE CMBS LOANS BALANCE SHEET LENDING CAPITAL MARKETS DISTRIBUTION WAREHOUSE LENDING LOAN SERVICING AGENCY FINANCE AFFORDABLE HOUSING DEBT & EQUITY © 2018 Wells Fargo Bank, N.A. All rights reserved. Wells Fargo Securities is the trade name for the capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including but not limited to Wells Fargo Securities, LLC, a member of NYSE, FINRA, NFA and SIPC, Wells Fargo Prime Services, LLC, a member of FINRA, NFA and SIPC, and Wells Fargo Bank, N.A. Wells Fargo Securities, LLC and Wells Fargo Prime Services, LLC are distinct entities from affi liated banks and thrifts. IHA-5532502 $65,000,000 CMBS execution Offi ce acquisition Basking Ridge, NJ $9,000,000 Fannie Mae Multifamily Refi nance Port Chester, NY

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