CBM’s Retail Shopping Center Management & Leasing Blog

Retail Real Estate News & Trends in Southern California
 

3466 E. Cesar Chavez Avenue, CA

Centers Business Management (CBM) leasing agent, Geoff Grossman, recently completed a lease transaction representing the landlord and tenant, Bank of America, on 680 SQFT ATM space. The unit is situated in a busy corner strip center is at the intersection of Cesar Chavez and Hicks, east of Boyle Heights and South of City Terrace. Boasting a diverse mix of A+ co-tenants, the property hosts Little Cesar’s Pizza, Metro PCS, Re Loya Insurance, and Opportune (financial services).


140 W. Anaheim Street, Wilmington, CA

Centers Business Management (CBM) Valley Division Director, Dave O’Connell, recently completed a lease transaction representing the landlord in a deal with Wing Stop, on a 1,600 SQFT retail space. The El Super grocery store + Rite Aid anchored shopping center occupies a full block along Anaheim Street, stretching between Avalon Boulevard and Marine Avenue in prime Wilmington. Along with the notable anchor tenants, the center also boasts a bevy of A+ regional and national co-tenants, including Chase Bank, Pay Less Shoe Source, Subway, Yoshinoya, Ace Check Chasing, and more!


10930 Long Beach Boulevard, Long Beach, CA

Centers Business Management (CBM) Valley Division Director, Dave O’Connell, recently completed a lease transaction representing the landlord and tenant, GameStop, on 1,592 SQFT retail space. The unit is in a corner strip center at the intersection of Long Beach Boulevard and Norton Avenue in prime Long Beach. In addition to GameStop, the center hosts a diverse mix of A+ tenants, including Metro PCS, Baskin Robbins Ice Cream, Wing Stop, Little Caesar’s Pizza, the UPS Store and more!


1407 E. Los Angeles Avenue, Simi Valley, CA

Centers Business Management (CBM) Valley Division Director, Dave O’Connell, and leasing agent, Brett Mero, recently completed a lease transaction representing the landlord and tenant, a local ice cream shop, on 2,405 SQFT retail space. The property is on East Los Angeles Avenue, between Executive Way, and Patricia Avenue, in the heart of Simi Valley’s central retail district. A massive, multi-block development, the Vallarta grocery store-anchored center also features a variety of A+ co-tenants, including, Golds Gym, Rite Aid, Simi Valley Cinema 10, and Chase Bank, and more!


Los Angeles, CA – August 2018, Centers Business Management (CBM) completes new leasing transaction with expanding fast food franchisee at Glendora Marketplace Power Center.

CBM leasing agent, Jason Ehrenpreis, recently completed a lease transaction, representing the landlord and a Fatburger franchisee on a 1,500 SQFT unit in Glendora Marketplace. Situated amid the community’s primary commercial district, Glendora Marketplace, the regions dominant power center is located on Lone Hill Avenue at the intersection of Gladstone Street in the heart of Glendora. In addition to Home Depot + Sam’s Club, the center’s notable co-tenants include a Wendy’s drive-thru location and Coco’s Bakery + Restaurant. And the pad in which the unit is located hosts Verizon Wireless, America’s Best Eyeglasses, Ortho Mattress, and a recently opened Blaze Pizza restaurant. Additionally, the center is surround by several sizable retail developments, home to a myriad flourishing tenants, including, Kohls, Home Goods, 24 Hour Fitness, In-N-Out Burger, Walmart, Costco, and many more. A stellar tenant roster that clearly makes this locale the area’s foremost retail shopping destination.

The franchisee is co-branding the site as a Fatburger + Buffalo Express (chicken wings) store. Both eateries are popular Southern California fast casual restaurants, with a strong, growing presence throughout the region. A multi-store owner, the francisee currently operates several WingStop + Fatburger locations throughout Southern California, and tentatively plans to open additional sites in the near future.

“With most desirable retail space fully absorbed, the biggest challenge for most tenants is identifying suitable sites,” says CBM leasing agent, Jason Ehrenpreis. “As such, competition is fierce for an ever-shrinking pool of available units,” Ehrenpreis adds. To combat this: “Landlords have to make capital investments in their properties to attract credible tenants,” Ehrenpreis explains. And, according Ehrenpreis, that’s exactly what Glendora Marketplace owners have done: “The landlord has invested a considerable amount of time and money in repositioning the restaurant portion of the pad building to attract new, exciting and quality brands to the property.” An effort Ehrenpreis feels has proven highly successful, noting: “This deal was the 2nd [Blaze Pizza, another tenant Ehrenpreis recently brought to the center, being the first] of three Quick Serve Restaurant spaces the landlord is seeking to fill.” And with only one unit remaining: “Interest is skyrocketing!” Ehrenpreis relates, jubilantly.

“Restaurant spaces are in high demand. But most restaurant tenants are only interested in ‘A space.’ And with such units basically non-existent, landlords’ only avenue to entice quality tenants are property upgrades,” says CBM President, Rick Rivera. “That’s how the Glendora Marketplace owners, who are clearly savvy retail landlords, are overcoming this growing challenge. And other landlords need to follow a suit if they ever hope to lease long-lingering vacancies,” Rivera asserts in reference to the tightening retail real estate market.

For more information about CBM and their retail leasing and property management services, please contact: Rick Rivera 310.575.1517 x201 | rickr@cbm1.com.

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This year’s ICSC Western Division Conference, scheduled for October 8-10, is happening just over a month from now.

As always, CBM is exhibiting at the convention. And once again, we’ve been assigned a prime end-cap locationBooth #1003 —  just inside the convention hall’s main enterance. The floorplan below indicates are our booth location — Just look for the big green dot ;—)

Are you planning to attend the convention? If so, please swing by booth #1003 and say hi! Members of Southern California’s leading retail leasing + property management firm will be on hand meeting and greeting.

We look forward to seeing you there!

Click to enlarge floorplan

 


In our ongoing Frequently Ask Questions series, we’ve covered How Much Does Property Management Cost?What Services Does Property Management Include? and How Often Will a Manager Visit My Property?

So, what’s next on the list?

Can I Keep My Own Bank Account (for the property the management company is to oversee)?

Another great question! And certainly, a prudent consideration for any commercial real estate investor.

In fact, if you’re like many of today’s shopping center landlords, one, or both, of the following scenarios probably sounds familiar…

1. Partnership Selected Bank

You own a shopping center in partnership with several parties, and the group has collectively agreed to process all property finances through a specific bank.

2. Lender Designated Bank

You financed the purchase of your shopping center, and the lender requires that all property finances be processed through a specific bank (usually the institution making the purchase loan).

Well, the good news is in either case, CBM can accommodate your situation!

Now, just to clarify our typical process…

When taking on a new property management account, we open a property trust account through our preferred bank.

We Use a Preferred Banking Vendor For Several Reasons…

== > We have a long-standing relationship with our bank and hold tens of millions of dollars in deposits with the bank, which entitles us to individualized attention and preferential treatment.

== > After so many years in partnership with our bank, we’re well versed in their procedures. And they’re similarly acquainted with our processes. This ensures transactions run smoothly, with no surprises, or unexpected bumps in the road.

But Using Our Vendor is Purely OPTIONAL

With all of the above said, however, holding a property trust account with our bank is merely an option. Not a requirement.

We can, and often do, work with many landlords to accommodate trust accounts at any bank.

Our lead accountant will interface with bank administers and establish our depositing and payment processing in accordance with that institution’s protocols. And given that we process tenant rent and CAM payments via ClickPay.com (an online automated payment portal), our accountant will ensure this payment portal integrates seamlessly with a landlord’s bank of choice.

For More Information on CBM’s Property Management Services…

Visit our Services page at cbm1.com/services


In our ongoing Frequently Asked Questions series, we’ve answered…

How Much Does Property Management Cost? And  What Services Does Property Management Include?

So, what’s up next?

How Often Will a Manager Visit My Property?

Let’s start answering this question by digging into…

Why Do Property Managers Conduct Regular Site Visitations?

Monitoring Your Property’s Physical Condition

Maintaining your retail shopping center’s physical condition is imperative! This is important for several reasons…

First, you want your property looking good and in peak condition, so it’s appealing to would-be customers. Because, of course, your tenants depend upon those customers to say in business.

Secondly, you want to ensure your property is good physical condition and free from any potential hazards. This is critical to avoid any potential trip-and-fall or similar accidents that could result in personal injury lawsuits.

Foster + Maintain Positive Tenant Relations

Nurturing positive and productive tenant relations is also key to sustaining a profitable shopping center.

Your tenants are your property’s financial lifeblood. Ensuring their needs are met and concerns are satisfied is crucial to promoting their continued residency in your shopping center.

Thus, consistent access to a sympathetic ear empowered to address your tenants needs and concerns is VERY important to them. And ultimately, tenants take comfort in knowing a landlord representative FREQUENTLY visits the property they inhabit to offer that sympathetic ear.

The Best Way to Accomplish These Goals?

Have a property manager conduct regular site visits!

Site Visitation Overview

Physical Inspection

When a manager visits your property, they pay close attention to your center’s overall condition, in addition to monitoring specific details.
This includes evaluating:
== > The quality of vendor services
== > The health of landscaping
== > The condition of the parking lot, sidewalks + curbs
== > The overall appearance + integrity of the building’s structure + façade
== > And much, much more!

Tenant Relations Management

In addition to conducting physical inspections, regular site visits also afford tenants a forum to:
== > Voice concerns or issue complaints (about property or neighborhood conditions, vendor services, disputes with other tenants, or frustrations with lease terms they are struggling to satisfy)
== > Offer assessments of property vendor services (poor cleaning or trash collection may be negatively impacting their business)
== > Point out maintenance issues, mechanical or structural problems, and any potential hazards (which may be negatively impacting their business)
== > Develop a simpatico relationship with their property manager (which is often instrumental in avoiding a number of potential crises)

Now that you understand WHY managers conduct regular site visits, the question then is…

How Often Will a Manager Visit My Property?

Typically, managers visit individual sites once per week.

In our nearly three decades of retail property management experience, we’ve determined that weekly visits are the optimal frequency to ensure a property is consistently maintained and remains in peak physical condition.

Are there exceptions?

Of course!

More Frequent Visits

In some case, managers visit a site more frequently than once per week. Reasons for additional visits may include…
== > Persistent maintenance, cleaning or trash removal problems a manager is working to correct
== > Construction, remodeling or other special projects your manager is monitoring
== > Tenant meetings
== > Tenant move-in + move-out oversight

And these are just a few examples, many other situations may necessitate additional site visitations.

Less Frequent Visits

In other cases, managers may visit sites less often than once per week.

The most likely reason for this is when the 12th through the 15th of the particular month falls in the middle of the week. Managers are usually quite busy between the 12th and 15th of each month preparing monthly landlord financial statements and narrative reports.

Thus, a manager may not be in the position to visit every site in their portfolio.

Are Regular Site Visits to Monitor Your Shopping Center a Concern?

Professional property management would likely benefit your property.

For more information about our management services, visit our Services page at: cbm1.com/services.


220 N. Maclay Avenue, San Fernando, CA

Centers Business Management (CBM) leasing agent, David Guardado, recently completed a lease transaction representing the landlord and tenant, a local security company, on a 1,200 SQFT street retail space. The unit is in street retail building on Maclay Avenue near 3rd Street, in the heart of downtown San Fernando. Situated amid the community’s quaint downtown district, the site is directly across from the San Fernando Public Library.


5162 Wilshire Blvd. Los Angeles, CA

Centers Business Management (CBM) Valley Division Director, Dave O’Connell, and leasing agent, Eric Kalfa, recently completed a lease transaction representing the landlord and tenant, a local veterinary clinic, on a 1,175 SQFT retail space. The unit is in a corner strip center on busy Wilshire Boulevard, just block east of La Brea Avenue, in the heart of Los Angeles’ Mid-Wilshire district. This well-located center is immediately adjacent to the massive Wilshire-La Brea mixed-used apartment / retail complex, and across the street from a high-volume sales Jack ‘N the Box drive-thru location.