CBM’s Retail Shopping Center Management & Leasing Blog

Retail Real Estate News & Trends in Southern California
 

23642 Calabasas Road, Calabasas, CA

Centers Business Management (CBM) leasing agents, Brett Mero and Eric Kalfa, recently completed a lease transaction representing the tenant, Wilshire Development, on a 1,054 SQFT office space. The unit is in a sizeable retail and office complex at the intersection of Calabasas Road and Granada Park in prime Calabasas. Situated amid Calabasas bustling retail district, the site is adjacent to the famed Calabasas Commons open-air shopping mall, a Caruso Properties development.


3001 El Cajon Boulevard, San Diego, CA

Centers Business Management (CBM) leasing agent, Barry Bussiere, recently completed a lease transaction representing the landlord in a deal with a barber shop, on a 1,245 SQFT retail space. The unit is in a newer neighborhood shopping center at the signalized intersection of El Cajon Boulevard and 30th Street in prime San Diego. Situated on a busy retail corner, the intersection’s notable neighboring tenants include Carl’s Jr (drive-thru location) and Sprint Wireless + H&R Block in the ground floor of a mixed-used development.


5558 Santa Monica Boulevard, Los Angeles, CA

Centers Business Management (CBM) leasing agent, Matt Saker, recently completed a lease transaction representing the landlord and tenant, a local coin laundry, on a 1,650 SQFT street retail space. The unit is in a street retail building at the intersection of Santa Monica Boulevard and St. Andrews Street in downtown Los Angeles. Situated directly across from 5601 Santa Monica, a 370,000 SQFT mixed-used development with ground floor retail below 375 residential apartments currently in development, the site is positioned amid a swiftly gentrifying region of Downtown Los Angeles.


8516 W. 3rd Street, Los Angeles, CA

Centers Business Management (CBM) property manager, Roselene White, recently completed a lease transaction representing the landlord in a deal with Juice Fusion, a local pressed juice maker, on a 630 SQFT retail unit. The property is at the intersection of 3rd Street and La Cienega Boulevard in prime Los Angeles. A phenomenal retail location, the intersection’s neighboring properties include the famed Beverly Center shopping mall; the Beverly Connection, which hosts, Target, Nordstrom Rack, Marshalls, TJ Maxx, Ross Dress For Less, Saks Off 5th, Old Navy, CVS and more; and a Coffee Bean + Tealeaf location.


27625 Shangri-La Drive, Santa Clarita, CA

Centers Business Management (CBM) Valley Division Director, Dave O’Connell, recently completed a lease transaction representing the landlord and tenant, Hibiki Sushi, on a 4,127 SQFT retail space. The unit is in a newer community shopping center at the signalized intersection of Shangri-La and Soledad Canyon in prime Santa Clarita. A sprawling property, the center stretches a full block along Soledad Canyon, a bustling retail corridor, and hosts a variety of A+ co-tenants, including T-Mobile, Dominos Pizza, UFC Gym, Centennial Bank, and more.


702 N. Lake Avenue, Pasadena, CA

Centers Business Management (CBM) leasing agent, Barry Bussiere, recently completed a lease transaction representing the landlord and tenant, Cricket Wireless, on a 2,400 SQFT retail space. The unit is in a corner strip center at the intersection of Lake and Orange Grove in prime Pasadena. A bustling retail sector, the intersection’s A+ neighboring tenants included Walgreens, Goodwill Industries, and a 76 Gas Station.


It’s simply inevitable… At some points as shopping center landlord, you’ll need legal support.

Mostly because, to use a legal term, you’re not at liberty to seek “self-help.”

In other words, you can’t confront a tenant with a baseball bat or move their stuff out in the middle of the night and change the locks.

Instead, you must use the court system to settle disputes you can’t resolve through verbal negotiations.

Where Do Most Disputes With Tenants Arise?

When a tenant fails to live up to their contractual obligations…

It could be the tenant’s rent or CAM payment is late. Maybe they’re several months delinquent on rent or CAM. Perhaps they’ve left their space owing money. Or it could be they’ve vacated your property and left considerable damage behind.

So, What Now?

You have a variety of options. And your approach is likely to depend on the circumstances involved.

How aggressively you chose to pursue a delinquent tenant may hinge on your desire to keep that tenant.

And your decision to hunt chase outstanding monies owed or compensation for damages may rest on whether you believe the tenant actually has any money to recoup.

But whatever the scenario, you may find yourself at the point where hiring a lawyer is your best course of action.

In the real estate business, this decision is known as: “Going to legal.”

It’s generally considered an “act of last resort.” Largely because when attorneys get involved, often no one wins.

Then again, there are several common situations that can be remedied, often quickly and inexpensively, by hiring a lawyer.

And toward that end, here are the 4 most common reasons a landlord hires an attorney:

Three Day Notice to Pay or Quit

Let’s say a tenant is late paying rent or CAM. Now, on one hand, they could either simply be late this particular month.

Alternatively, this could the first stage in an eventual default that ultimately requires a formal eviction to oust the delinquent tenant for non-payment of rent.

As a landlord, you really have no way of knowing one way or the other? It is, however, clearly defined by law that a posting a 3 Day Notice to Pay or Quit is the first step in an eviction process.

Now, the tenant may quickly pay upon receipt of a 3 Day Notice. And the situation progresses no further.

But if this is the beginning of an eviction, your 3 Day Notice must be prepared and served in strict adherence to the “letter of the law.”*

*IMPORTANT NOTE: An eviction process includes strict guidelines, which strongly favor tenants. And if those guidelines are not diligently followed “to the letter of the law,” an unsympathetic judge could force you to start over from square one.

Therefore, we ALWAYS recommend hiring an attorney that specializes in real estate law to prepare and serve a 3 Day Notice.

Additionally, there’s an intimidation factor encouraging payment when the tenant hears from your lawyer.

Unlawful Detainer Action (UD)

Let’s say you post a 3 Day Notice to Pay or Quit and the tenant doesn’t respond. Or responds stating they don’t have the money to pay. And fails to offer a credible path to becoming current on outstanding rent.

The next step is filing an Unlawful Detainer (UD).

This is formal legal action that requires an attorney to draft an Unlawful Detainer notice informing the tenant of their breach of contract and the landlord’s intention to reclaim due to non-payment of rent. The Unlawful Detainer notice must be formally served by a duly authorized process server. And this service must be officially recognized by the tenant.

An Unlawful Detainer action may also wind up in court with a formal hearing in front of a judge. And, if carried to its ultimate conclusion, a UD will result in an official eviction and lock-out conducted by a county sheriff’s deputy.

Much like a 3 Day Notice, however, a UD doesn’t always result in an eviction. The threat of a UD can be used as leverage to prompt a delinquent tenant to pay outstanding rent.

In other words, just because you file a UD doesn’t mean that you must follow through with an eviction.

Additionally, outside of any leverage you apply, a delinquent tenant is afforded numerous opportunities throughout the UD process to pay their outstanding rent and maintain their tenancy.

Tenant Vacates a Property Owing Money

Let’s say a tenant vacates your property. Maybe the left because their lease expired, and they chose not to renew. Or perhaps they assigned their lease, and the assignee vacates the space, again, for any number of possible reasons. Or because they were formally evicted.

Whatever the scenario, the tenant leaves still owing you money. Whether for outstanding rent, CAM, or other funds designated in their lease agreement.

You have a right to file a lawsuit against the vacating tenant to recoup monies owed you under the term of their lease.

Your decision to take such action likely hinges on whether you believe the tenant has any money.

Tenant Vacates a Property Leave Behind Severe Damage

Let’s say a tenant vacates your property. And after they depart, you discover they’ve done considerable damage to the space they formerly occupied.

You have a right to file a lawsuit against the vacating tenant to recoup the cost of repairing your property.

Here again, your decision to pursue the tenant for damages depends largely on whether you believe the tenant has any money to recoup.

Struggling With Delinquent Tenants in Your Shopping Center?

Working on behalf of our landlords, we’re regularly retaining attorneys to prepare and serve 3 Day Notices, file Unlawful Detainers, and pursue tenants for unpaid rent or property damage.

And if you’re facing struggles like these with your tenants, we can help!

For more information on CBM’s property management services, visit our services page: cbm1.com/servcies


8344 Topanga Canyon Boulevard, Canoga Park, CA

Centers Business Management (CBM) leasing agent, Brett Mero, recently completed a lease transaction representing the landlord and tenant, a local hair salon, on a 1,400 SQFT retail space. The unit is in a sizeable neighborhood shopping center at the signalized of intersection of Topanga Canyon + Schoenborn. In addition to a strong tenant mix within the shopping center, the property is directly across from a Lowes Home Improvement Center, and adjacent to a well-patronized Denny’s restaurant.


Technology has completely reshaped huge swaths of our society. And when comes to commerce, consumers have come to expect that the businesses who serve them keep pace with new technology.

Thus as a business owner, your operation must evolve to meet these demands or risk extinction.

You can certainly take a Luddite attitude of: “This is how WE do things!” and refuse to budge. But you’re in serious jeopardy of being crushed by your competitors, not mention doing a disservice to your customers. And when fail to satisfy your customers, you lose them.

Because at a certain point, adopting new technology ceases to be about providing “convenience” and “improving efficiencies,” and simply becomes adhering to the “new norm.”

That’s why we’ve invested HEAVILY in leveraging technology in both our brokerage and property management services.

And not because we necessarily aim to be on the “cutting-edge” of the “latest technological developments.” We’re not pretending to be a some Silicon Valley tech start-up over here!?

But rather, our goal is to provide our clients with the best service possible. And taking advantage of the technological tools at our disposal helps us achieve this goal.

How does this look in practice within our business?

On the Leasing + Brokerage Side…

cbm1.com

We’ve actually been making use of technology as a marketing tool for several decades. Our website, cbm1.com, was among the first for a brokerage of our type in the marketplace. And it continues to rank near the top of organic Google searches for industry-critical keywords, in large part because of how long our domain name has existed.

LoopNet + CoStar

What’s the industry’s Gold Standard for commercial real estate Multiple Listing Services (MLS)?

In a word, LoopNet. And we’ve been a subscriber nearly as long as the platform has been in existence.

And with good reason! Because next to property signage (our least tech-savvy tool ;—), LoopNet is our largest driver of completed lease transactions.

We’ve haven’t always been CoStar customers. But they have always been the FIRST name in CRE data.

And since their acquisition of LoopNet, we’ve joined the fold. Truth be told, the technologically advanced tools that CoStar has provided us have significantly improved our ability to lease and sell properties.

CREXi

As advanced and valuable as LoopNet + CoStar may be, they’re not the ONLY game in town. And in our tireless effort to gain MAXIMIZE for our listings, we make use of every avenue at our disposal.

One such avenue is the growing CRE MLS platform, CREXi. With increasing broker participation and more new listings posted to the site every day, CREXi is looking to rival LoopNet’s prominence and reach.

And more than just a passive site, CREXi aims to become a distribution channel as well. Soon, subscribers will receive regular email updates highlighting new listings that meet their preferred criteria.

AIR MLS

Though primarily a player in the industrial space, AIR has is steadily cultivating a retail presence. And much like our participation with CREXi, we’re looking to take advantage of every opportunity possible to expose our listings to the marketplace.

Mass Email

While by no means a “new technology,” email’s prevalence, not to mention importance as a marketing tool, CANNOT be overstated!
And toward that end, we’ve amassed a 10,000+ subscriber email list. A line of communication that enables us to promote our listings directly to thousands of highly active retail tenants + top producing tenant rep brokers.

PropertySend

As robust as our email list happens to be, it’s largely targeted to regional players.

But what about when we have a listing, whether for lease or sale, that potentially appeals to investors across the country?

PropertySend is a mass email service that enables us to directly promote our listings to major tenants and well-capitalized buyers NATIONWIDE.

Retail LeasTrac

Based on their highly desirable location, certain sites are ideal for A+ credit tenants. But how do you reach those tenants, especially if they’re a major corporation with layers and layers bureaucracy separating you from the actual decision-makers?

Retail LeasTrac – a national database of credit tenant contact info – enables us to leap-frog the gatekeepers and connect DIRECTLY with the powers that be.

Our leasing team frequently makes use of this exceptional tool to present exceptional sites to highly prominent national retailers.

CRM

An acronym for Customer Relations Management, CRM is an incredibly powerful tenant tracking and deal management tool.

Our leasing agents note + catalog every prospective tenant, creating a detailed profile – noting use-type, preferred unit size, target area, budget and much more – for each contact. All of which is automatically integrated into a database shared companywide.

This vast, pervasive information store is fully indexed and instantly searchable. And with this sea of actionable data at their fingertips, our agents are empowered to do significantly more deals in far less time than ever before.

Social Media

You’re only as good as your network. And thanks to our highly visible social media presence, our leasing + management teams have greatly extended their reach.

By connecting with prospects, fellow brokers, vendors, and other industry cohorts via our active social channels, our associates have cultivated pivotal relationships that have made deals happen time and again.

And on the Property Management Side…

Skyline

The backbone of our property management operation?
Skyline!

A property management software platform specifically designed to service retail properties, Skyline enables us to monitor property financials at a granular level.

Monies for collections and payables perpetually follow in-and-out of our property trust accounts. Our accounting department keeps a firm hand on these funds, recording and tracking every payable and receivable (to the penny!) for each property we manage.

And thanks to Skyline, nary a cent under our prevue is unaccounted for!

ClickPay

While Skyline enables us to closely and carefully monitor collections and payables, it doesn’t liberate us from chasing after tenants for outstanding rent + CAMs.

“The check is in the mail” is a phrase that makes every landlord (and property management firm) CRINGE.

So, to cut the mailman (and the accompanying uncertainty) out of the equation, we use ClickPay. An automated, online bill-pay service, ClickPay enables tenants to pay rent + CAMs from anywhere through an internet browser.

Whether via their personal online bill-pay service, ACH (direct bank-to-bank transfer), or even credit cards tenants can make payments instantly. And the payments are automatically noted in Skyline, perfectly synchronizing all record of incoming collections.
No more checks. No more mailman. And no more excuses ;—)

AvidXchange

Of course, gathering collections in a timely fashion is critical to ensuring your property is profitable. But effectively managing payables is an equally important aspect of maintaining a financially sound property.

Acknowledging this fact, it’s no surprise paying scores of utilities and vendor bills for each property we manage is a sizable chore. And the consequence of failing to do so can be significant. A single missed payment can spell service disruptions, late fees, and even account cancellations.

To stay on top of this herculean task, we use AvidXchange. Similar to ClickPay, AvidXchange processes and automates utility and vendor payments entirely online.

Service providers submit invoices electronically directly to AvidXchange. In turn, AvidXchange codes and uploads bills to their online portal for our property managers approve. Once approved, payment is authorized and transferred electronically to vendors via their payment method of choice.

Bing, bang, BOOM! The entire payables process is completed online with the few clicks of a mouse.

Site Audit Pro

Pictures are a property manager’s best friend!

From documenting necessary repairs and hazards to confirming completed maintenance to detailing tenant violations, homeless encroachment, service vendor failures (and successes!) – a picture tells 1,000 words.

But snapping a gallery of pix on your smartphone, sorting + downloading them all to your computer, and them formatting them for inclusion in a property’s monthly narrative report is a huge time suck.

Site Audit Pro, however, makes the photo documentation process a BREEZE! A convenient smartphone app, Site Audit Pro enables managers to take photos, and organized and caption the images using the app’s built-in report template. From there, the manager forwards the completed report to their computer for inclusion with monthly property narrative reports.

Site Audit Pro is another time-saving tech tool that’s proven a real game-changer for our management team!

Interested in Putting CBM’s Tech Savvy Leasing + Management Team to Work on Your Retail Shopping Center?

For further information about leasing + management services, visit our website services page at: cbm1.com/services


12510 Magnolia Boulevard, Valley Village, CA

Centers Business Management (CBM) Valley Division Director, Dave O’Connell, and leasing agent, David Guardado, recently completed a lease transaction representing the landlord and tenant, a local pet supply store, on a 1,600 SQFT retail space. The unit is in a corner neighborhood shopping center at the signalized intersection of Magnolia + Whitsett in prime Valley Village. Situated on a bustling retail corner, the intersection’s thriving co-tenants include a Rite Aid, Pizza Hut + Wingstreet drive-thru, Angeleno Crossfit, and USPS location.