Ever notice how one shopping center thrives, while another, very similar shopping center, drowns in vacancies?

Similar location, similar demographics, even similar leases rates. But one center is consistently profitable, with little or no vacancy. And the other is constantly struggling to fill two or three perpetually empty spaces.

What separates these two properties? What’s the differentiating factor?

Tenant Synergy

What is Tenant Synergy?

Try to imagine your shopping center through the eyes of your tenant’s patrons. When they arrive at your shopping center, why are they there? What do the need?
For example sake, here are a couple of quick scenarios…

Typical Neighborhood Center in Middle-Class Community

Let’s say a guy needs to have his dog groomed…

-He drops Fido off at the groomers.

-With some time to kill, he stops by the medical marijuana dispensary.

-After picking up his “prescription,” he’s feeling a bit hungry, and orders a turkey and Swiss cheese sandwich at the quick-serve sandwich shop.

Or let’s say women needs a manicure…

-After work she stops into the nail salon and has a mani/pedi

-Nobody cooks anymore, so after the nail salon, she picks up Chinese take-out for the evening’s family dinner.

-And what’s dinner without a little libation? So she grabs some beer and wine at the mini-market to go with the take-out.

Neighborhood Center in Lower Income or Predominately Hispanic Area

Let’s say a domestic worker needs to cash a check, take her son and daughter to the dentist, and pick up a few items for dinner…

-She stops by the Check Casher and cashes her paycheck.

-Drops the two kids at the dentist for a check-up.

-And picks up a few grocery items at the mini-market before they all head home

Or an independent contractor handling landscaping or construction work needs to get a loan for ready cash in advance of his next pay check, and then pick up dinner or basic groceries for his family…

– He stops at the Payday Loan and arranges a quick short term cash loan

-Orders dinner to go from the taqueria

-Picks up milk + bread from the mini-mart

Right Tenant Mix Serving the Right Community

Tenant synergy is borne out of a complementary tenant mix serving the surrounding community’s needs.

And assembling this kind of tenant mix in your shopping center is exactly what will keep it fully leased and financially productive.

So How Can Professional Leasing Establish Synergy in Your Shopping Center?

As a landlord, you may be aware of how complementary tenant uses contribute to the productivity of your property. The concept is fairly intuitive.

But when a tenant vacates your center, how quickly does the ideal replacement occur to you?

And even if an ideal replacement does immediately come to mind, how well are you connected with suitable tenants, or tenant rep brokers, to fill that vacancy?

Leveraging Contacts + Connections

A professional retail leasing agent speaks to hundreds of prospective tenants and highly active tenant rep brokers every week. That’s thousands of conversations a month. All of which revolve around a particular type of tenant seeking a space in a specific area.

And a consistent percentage of those conversations result in executed leases.

In other words, a professional retail leasing agent knows which types of tenants are seeking space in what areas, and can funnel those tenants into corresponding vacancies.

And if the agent is representing your property, that means they’re funneling said tenants into your vacancy.

Find Out More About CBM’s Retail Leasing Services

Visit our Leasing Services page and find out more about how CBM professional retail leasing services can fill your vacancies with complimentary tenants – and create synergy in your shopping center.

Payless Is Said to Be Filing for Bankruptcy as Soon as Next Week

Payless Inc., the struggling discount shoe chain, is preparing to file for bankruptcy as soon as next week, according to people familiar with the matter.

The company is initially planning to close 400 to 500 stores as it reorganizes operations, said the people, who asked not to be identified because the deliberations aren’t public. Payless had originally looked to shutter as many as 1,000 locations, and the number may still be in flux, according to one of the people.

Payless’s bankruptcy would add to a tumultuous year in retail, with several bankruptcies and hundreds of store closings — even at companies that aren’t distressed. The industry is racing to try to adapt to more online purchasing and a shift away from mall shopping.

Payless was bought by private equity firms Golden Gate Capital and Blum Capital Partners in 2012 as part of the breakup of publicly traded Collective Brands Inc. The company, founded in 1956 in Topeka, Kansas, employs almost 22,000 people, according to its website. It has more than 4,000 stores in 30 countries.

Payless didn’t immediately respond to a request for comment.

View original article…

This year’s ICSC Western Division Conference is quickly approaching!

With the August 31st start date barley three weeks away, the anticipation is MOUNTING!

So now the question is, will we be seeing you in San Diego? If you’re making the trek, definitely stop by Booth #503 and say HI! We’d love to see you.

Once again, we scored a PRIME END-CAP right inside the convention hall’s main entrance (check out the floor plan below to orient yourself — and see our killer location!).

We hope to see you there!

floor plan

By Bisnow, Thursday, July 7, 2016

Experts Say Medical Tenants To Become Even More Prevalent At Shopping Centers

As struggles in the retail sector persist, landlords are looking even more heavily at medical centers. Bisnow sat down with CBRE Americas head of retail owner/agency practices Todd Caruso (below, left) and CSG co-chair of real estate, development and land use Mitchell Berkey (below, right) to discuss the growing presence of medical facilities at retail centers.

Bisnow: Why do we see an uptick in medical facilities taking space in retail centers?

Mitch: There are three major forces at work regarding the growth in urgent care centers in what were traditionally retail properties. One is that Americans are spending an increasing amount on healthcare; two, Americans want healthcare that is easily accessible, faster and less expensive than the traditional emergency room experience; and three, in the real estate world there has been a shrinking in the number of creditworthy tenants over the years. The urgent care center sector has grown substantially, and these establishments generally seek accessible and safe locations with parking, and tend to have strong balance sheets.

Todd: We have an aging demographic that has an enormous appetite for health-related services. One of the driving factors is the overall cost of having someone in a hospital for an extended period of time. Many surgeries are being done through outpatient these days. Urgent care Wikimedia

Bisnow: What benefits are landlords seeing with these tenants?

Todd: It really depends on the market and merchandise mix of the retail shopping center. Investors and owners have been very positive for reasons you might guess—creditworthiness. In general, many of the expanding hospital systems have robust balance sheets. When combined with extended lease terms, it makes for an attractive tenancy. Owners consequently have less attrition in their retail space, and lower overall expenses associated with having to “build out” due to turnover.

Mitch: From the landlord’s side, urgent care operators are attractive because they are strong financially, invest in their space and generate traffic to the center. Their staying power and stability adds certainty to a landlord’s tenant roster and the seven-days-a-week operations drive shoppers to other retail tenants. This new breed of retail tenant is here to stay as landlords seek to reposition centers which have suffered due to the impacts of e-commerce and retailer consolidation.

Bisnow: How has the changing healthcare landscape affected this trend?

Todd: If we’re thinking about growth industries in the US, certainly healthcare would be one of those. Think about the potential for all of the medical-related companies that have been developed over the past several years—from the financial end to outpatient services like dialysis centers, MRI facilities, surgery centers, dental and ortho, chemo centers, urgent care centers, etc.

Mitch: Take urgent care centers, for example. There are over 7,100 urgent care centers now in the US and the typical urgent care center experience includes seeing a healthcare provider in 30 minutes or less and being in and out in 60 minutes or less. Compare that to the typical emergency room visit, and you can see right there why they have become so popular. There is tremendous growth in this field.

View original article here…

Another CBM Original…

We’ve already experienced our first heatwave….

And if this first bout is any indication, this summer’s likely to be a doozy.

But whether its summer or winter, the SoCal sun is RELENTLESS.

With an average of 284 sunny days each and every year, those ultraviolet rays just never let up. And many shopping center tenants run AC year round, which puts a constant strain on your HVAC system.

Of course when summer arrives, the heat volume goes WAAAY up. And the load on your HVAC increases all the more.

Unfortunately, HVAC systems are generally ignored, until there’s a problem. And by then, it’s too late…

What Happens When Your Shopping Center’s HVAC System Goes Down?

-You’ve got a fistful of tenants screaming on the phone at regular intervals

-Every HVAC company in town is booked handling other EMERGENCY HVAC calls

-And quite possibly, your HVAC system is dead and in need of complete replacement

But there is solution that can help you avoid all of these problems: An HVAC Maintenance Program

Not familiar with HVAC Maintenance programs? Basically, you contract with an HVAC maintenance firm for regular maintenance inspection.

What are the Benefits of an HVAC Maintenance Program?

Long Term Savings

Let’s start with the cost. As you probably guessed, HVAC Maintenance Programs are not free. And many maintenance programs require an annual contract.

These programs, however, are a property maintenance expenses, and as such can be billed back to your tenants (assuming they’re on NNN leases, which of course they should be ;-).

Even if you have vacancy and must share in a portion of CAM fees, or don’t have your tenants on NNN leases, HVAC maintenance programs are still a bargain when you consider lax or inadequate maintenance are the most common cause of untimely HVAC system failure.

Rest assured, the cost of regular maintenance is certainly less than a brand new HVAC system.

Which brings us to our second point…

Extends the Life of Your HVAC

Over time, constant use, exposure to the elements, and general wear take a toll on your HVAC system.

Left unchecked, deferred maintenance can reduce your HVAC’s efficiency and ultimately result in its early death.

But a maintenance program monitors your HVAC and addresses issues as they arise. That means you don’t have to worries about a sudden HVAC system failure unexpectedly creating havoc at your property.

Reduces Energy Costs

Poorly maintained HVAC system run inefficiently. In turn, your electricity costs soar.

Sure, if your shopping center is on a NNN lease, tenants pay your electric bill. But paying higher bills due to a poorly maintained HVAC system is sure to frustrate your tenants.

And how long before for an irritate tenant is relocating to a more energy efficient shopping center?

Avoids Sudden System Failure

What happens if your HVAC system suddenly fails?

You’ll wind up frantically trying to get a contractor out to your center ASAP to inspect your system, price out a replacement, and organize installation. All of which could takes weeks, if not longer.

In the meantime, your tenants are furious about the intolerable heat. Insisting all the while it’s killing their business (and they may well be right).

With a maintenance program, however, you can completely prevent this scenario. An HVAC inspector will conduct semi-annual inspections, and warn you well in advance when your HVAC is approaching end-of-life.

Plus, when replace time comes; your inspector will help ensure you get a competitive price for a new HVAC system. And coordinate installation with as little disruption to your tenants normal business operation as possible.

What do HVAC Inspections Typically Include?

The process varies a bit from company to company, but here are the basics:

-Tightening the electrical connections and measuring voltage and current to ensure safety and avoid undue wear-and-tear on your system.

-Lubricating moving parts to avoid friction in the motors which increase power usage drives up your electric bill.

-Inspecting the condensate drain to make sure it’s free and clear to avoid water damage from a backed up condensate overflow and flooding.

-Measuring the airflow around the condenser coil to ensure maximum flow, improving your systems efficiency by up to 10%.

-Inspecting and cleaning the condenser air conditioning coils to reduce wear-and-tear on your air conditioning system.

Seeking a Qualified + Reliable HVAC Contractor?

This part is easy – Just ask your property manager.

In managing their portfolio, property managers works with many HVAC contractors, making them an excellent referral source. Best of all, property managers only refer licensed, bonded and insured contractors. A critical concern when hiring any contractor to work at your property.

Don’t have a property manager? Well…

Find Out More About CBM’s Professional Property Management

Visit CBM’s Services page to find out more about how property management can benefit your shopping center.

By SCTWeekly, Thursday, April 28, 2016

Lemonade brings California cuisine to fast-casual diners

For some, the word “lemonade” may conjure memories of childhood entrepreneurship. For Alan Jackson, the word is symbolic of California. “The simple word embodies a sense of light, simplicity and playfulness,” said Jackson, the founder, CEO and chef of Culver City, Calif.–based Lemonade Restaurant Group. “And this one-word name explains the way we think, prepare our food, serve our customers and want to make people feel. While the word is nostalgic, it is also aspirational, youthful and timeless.”

Jackson and his wife, Heidi, opened the first Lemonade restaurant in 2008, in West Hollywood, Calif., to fill a void they perceived in the local dining scene. “As a chef, when I wasn’t working, I couldn’t find anything that was flavorful, had variety, was vegetable-focused and [was] affordable or easy,” he said. “Thus I wanted to create an outpost for people to get the type of food I wanted to have daily for both myself and [my] family.”

Today the company operates 23 restaurants, all in Southern California. Roughly a dozen more are scheduled to open soon, and most of those will be in Northern California’s Bay Area. There are no table servers — diners order at the counter and then carry the meals back to their seats. This format helps create a closer connection between the restaurant and the customer, according to Jackson. “There was a picture I saw in a magazine that inspired my thinking about this connection to the customer experience,” he said. “It was of a restaurant in Turkey where a chef was leaning over the counter, steaming pots below him, talking with his guests. It was so inspirational for me.”

Vegetables are the stars of the Lemonade menu, with meat and other proteins playing supporting roles. “A lot of our menu ideas come from mistakes and ‘aha!’ moments — food I might cook at home, ideas I get [while] walking through a grocery store or dining at another chef’s restaurant,” Jackson said. “I’d say my food is influenced by Los Angeles’ melting pot of people and food.” Indeed, the menu, which changes eight times per year (twice per season) is both diverse and unconventional, featuring such specialties as avocado with heirloom tomato, pine nut and lime-cilantro vinaigrette; buttermilk-baked chicken; cucumber-mint lemonade; and watermelon radish with seared ahi tuna and snap peas.

All the restaurants are company-owned, except for two licensed restaurants — of which one is at the University of Southern California and the other at Los Angeles International Airport. The company plans to eventually license the brand internationally, though not domestically. “Our growth will mostly be corporate-store-driven both now and into the future,” said Ian Olsen, the company’s president. “Plans for growth are fairly hyper-focused on the Bay Area trade area for the next 18 to 24 months, with some SoCal in-fill. Beyond that, we’re identifying both Midwest and East Coast cities where we can begin planting some monument flags, New York City being an obvious one we’d like to get to sooner rather than later.”

Lemonade likes 1,500-to-3,000-square-foot spaces and street-corner sites. “Street-side real estate drills down into the fabric of a particular neighborhood and lets you feel the inherent heartbeat that pulsates through the veins of that village,” said Olsen. “I’ve rarely ever witnessed a mall location that can provide a similar effect, but developers are getting smarter and better at achieving this end. Pacific City, developed by DJM Partners, in Huntington Beach [Calif.], is a prime example of this. There, a very urban feel and texture was brought into a beachside mall location, creating a world-beater of a product. We’re very excited about our location there.”

Lemonade’s creative and innovative approach to California cuisine, set in a vibrant yet relaxed atmosphere, is a complementary fit for several Westfield projects, according to Adam Corti, vice president of project leasing at Westfield. “Working with their experienced team was a fun process and resulted in the execution of a colorful take on a modern marketplace,” he said. “They have, most recently, opened up with us at Westfield University Town Center and are off to a tremendously successful launch.”

View original article here…

By Globe St, Tuesday, May 3, 2016

Sports Authority Sets Auction Date, May Close All Stores

ENGLEWOOD, CO—A date has been set for the auction of Sports Authority Inc. store leases, according to court documents filed Tuesday. Judge Mary Walrath at US Bankruptcy Court for the District of Delaware has set May 16 for the auction, which follows the sporting goods retailer’s announcement that it was pursuing a sale of “some or all of the business.”

Published reports have indicated that all 463 Sports Authority stores could end up closing, although the company has not yet committed to that course of action, and that the retailer had abandoned attempts to reorganize because it was unable to get its creditors to agree on a reorganization plan. “It has become apparent that the debtors will not reorganize under a plan, but instead will pursue a sale,” attorney Robert Klyman told Walrath at a hearing last week, according to the Wall Street Journal.

Headquartered in Englewood, CO, Sports Authority filed for Chapter 11 protection this past March, citing debt of more than $1.1 billion. At the time, the company planned to shutter 140 of its stores.

It’s still proceeding with that plan, but in a statement, the retailer says the outcome of the auction process “will determine whether any additional store closings will be required.” The stores already slated for closure will not be part of the May 16 closing store lease auction, according to court documents. According to the statement, the company has received “initial expressions of interest from a number of potential buyers, and we are optimistic” about the results of the sale process.

When Sports Authority announced its original Chapter 11 filing, which had been widely expected, it cited “a comprehensive review of the Sports Authority store portfolio in light of the increasing amount of shopping that is occurring online. As a result of these changes in consumer buying patterns, Sports Authority determined that it needs fewer stores as part of its long-term business model.”

View original article here…

Struggling to fill vacancies in your shopping center?

Then it’s probably a good idea to know the most active tenants in your marketplace.

But how do you access that kind of data? LoopNet tells you what is for lease, but not who is leasing what. CoStar offers that type of data, but they charge EXORBITANT rates for access privileges. And tack on additional fees for every added feature.

So if you’re like most independent retail property landlords, such tools out of your reach.

Well Here’s Some Good News!

CBM completed nearly 400 deals last year in Los Angeles and Orange County, a pace we’ve maintained over the last half decade. Our 2015 completed transaction list offers a clear image of the most active Los Angeles and Orange County retail tenants.

Here’s breakdown of CBM’s completed leasing transactions organized by tenant type and usage…

Total Restaurants & Food Users: 54


Restaurant and food users were by far our most active individual retail tenant category. Here’s a further breakdown by type and usage:

Restaurants By Type

  • Mexican (14)
  • Asian (11)
  • Cafés, Bakeries & Donut Shops (7)
  • Ice Cream, Frozen Yogurt & Candy Shops (7)
  • Takeout Pizza (5)
  • Juice Smoothies & Boba (3)

Credit Restaurant Tenants

  • Waba Grill (6)
  • The Stand
  • Subway
  • Little Caesar’s Pizza
  • Domino’s Pizza
  • Baskin & Robbins
  • Wienerschintzel
  • Starbucks
  • Dunkin Donuts

Total Retail Office Users: 75

Technically there are more retail office tenants than restaurant and food use tenants. Retail office tenants, however, represent a broad and diverse range of businesses. Here’s a further break down by business type:

Total General Office Space: 19


Total Medical Offices: 17

  • Dental (2)
  • Acupuncture (1)
  • Pharmacy (1)
  • Physical Therapy (1)
  • Medical Billing (1)
  • Hospice Care (1)
  • Speech Therapy (1)
  • In-Home Health Care (1)

Credit Tenants

  • Concentra Health (1)
  • Allied Health (1)
  • Community Health Alliance (1)
  • DaVita Dialysis Center (1)
  • Total Insurance: 15
  • State Farm (3)
  • Farmers (1)
  • Adriana’s (1)

Total Auto Title Loans: 8

  • Title Max (6)
  • Fast Auto (2)

Total Tax Prep Offices: 6

  • Liberty Tax (1)
  • H&R Block (1)
  • Jackson Hewitt (1)

Total Banks: 5

  • Wells Fargo (1)

MISC Retail Office Tenants: 11

  • Staffing & Employment Agencies (5)
  • Real Estate & Mortgage (2)
  • Law Offices (3)
  • Construction Office (1)

Personal Services

Total Hair Salons, Barber Shops, Nail Salons & Eyebrow Threading: 22


Hair and nail salons are the largest personal service tenant. Here’s a further breakdown by service type:

  • Hair Salons (16)
  • Barber Shops (6)
  • Nail Salons (8)
  • Total Eyebrow Threading (6)

Total Massage: 9

Massage is the second largest personal service tenant. Here’s a further breakdown by massage type:

  • General massage (8)
  • Foot massage (1)

Coin Laundry: 6

A row of industrial washing machines in a public laundromat.

Coin laundries are the third largest personal service tenant.

Check Cashing, Payday Loans & Pawn Brokers: 5

Financial services are the fourth largest personal services tenant.

Dry Cleaners: 4

Dry cleaners are the fifth largest personal service tenant (tied with dance, yoga and martial arts studios).

Dance, Yoga & Martial Arts Studios: 4

Dance, yoga and martial arts studios were tied with dry cleaners as the fifth largest personal service tenant.

Tutoring: 2

Tutoring was the sixth largest personal service tenant type. Here’s a further breakdown by provider type:

  • Kumon Learning Center (1)
  • Mathnasium (1)

Retail Sales

Total Cell Phone Sales & Service: 27


Cell Phone Sales and Service tenants are the largest retail sales tenant. Here’s a further breakdown by provider:

  • Cricket (14)
  • Metro PCS
  • (7)Sprint (3)
  • T-Mobile (3)
  • Verizon (1)

Total Tobacco Shop & Vape/E-Cig Sales: 9

Tobacco and Vape + E-Cig shops are the second largest category in retail sales. Here’s a further breakdown by store type:

  • Tobacco Shops (6)
  • Vape & E-Cigs (3)

Mattress Stores: 6

Mattress store are the third largest retail sales tenant.

Total Convenience Stores & Mini Markets: 5


Convenience stores are the forth largest retail sales tenant (tied with clothing stores). Here’s a further breakdown by retailer:

  • 7-Eleven (1)

Total Clothing: 5

Clothing stores are tied with convenience stores as the forth largest retail sales tenant.

Total Thrift & Discount Stores: 3

Discount stores are the fifth largest retail tenant. Here’s a further breakdown be retailer:

  • Salvation Army (1)

Video games: 3

Video games sales were the fifth largest retail sales tenant. Here’s a further breakdown by retailer:

  • Game Stop (1)

CBM’s Retail Leasing Team Has a Finger on the Pulse of Los Angeles and Orange County Retail Markets.

If you really want to fill your vacancies quickly and efficiently, with tenants ideally suited your property, hiring a competent leasing broker is critical.

And as the list above shows, CBM’s leasing team gets a LOT of deals done. And our leasing agents have strong relationships with the most active SoCal retail tenants. In short, our leasing team has their fingers on the pulse of the marketplace.

Hire CBM to Lease Your Shopping Center

To find out more about CBM’s leasing or hire CBM to lease your property, visit our Services page for more details and contact info.

As the old saying goes, the only things you can count on in life are death and taxes.

And when it comes to your shopping center, property taxes are due twice a year, every year, without fail.

In fact, the 2nd installment deadline is coming up on April 10th, which is just a stone’s throw away… And that brings to mind some important questions…

Who’s Making This Payment?

You? Your account or business manager? Your property manager?

Where Are the Funds Coming From?

Do you have the ready cash necessary to cover the payment? Do you need to liquidate assets or pull cash out of other accounts to pay the bill?

These are all important questions, particularly if you want to avoid penalties. And those penalties aren’t chump change. In both Los Angeles and Orange Counties, delinquent payments are assessed 10% of the total bill + processing and collection fees.

Fines for Delinquent Tax Bills Can be STEEP

The average tax bill among CBM managed properties is nearly $13,000 (per installment), and some climb over $100,000. That’s anywhere from $1,300 to $10,000 tacked on to an already hefty bill you’d rather not be paying anyway.

In short, it’s in your best interest to stay on top of your property taxes. But with so many other responsibilities already crowding your busy schedule, especially when it comes to managing your shopping center, it can be tough to stay up-to-date.

Professional Property Management Can Help You Manage Property Taxes (and a LOT more!)

In addition to managing tenants, overseeing maintenance vendors, paying utility bills and mortgages, your property managers also pays your property tax bill. Beyond just paying the bill, they remind you in advance of the impending bill, notify you of your account status and work with to make sure you have the necessary fund to cover the payment.

To find out more about CBM’s property management services, visit our Services pages for further details and contact info.

Additional Shopping Center Property Tax Bill Resources

Here are some additional resources from the Los Angeles and Orange County Assessors websites:

Los Angeles County Assessors: Important Notes + Dates

Annual property tax bills are mailed in early October of each year. The bill is payable in two installments.

The 1st installment is due on November 1st and is delinquent if the payment is not received by 5:00 p.m. or postmarked by December 10th. A 10% penalty is assessed for delinquent payments.

The 2nd installment is due on February 1 and is delinquent if the payment is not received by 5:00 p.m. or postmarked by April 10th, a 10% penalty and $10.00 processing fee are assessed.

If December 10th or April 10th falls on a Saturday, Sunday, or a legal holiday, the delinquency date is the next business day.

Both installments can be paid at the same time. If you choose to pay both installments in one payment, please include the first and second installment stubs with your payment.

Payment Deadline Summary

1st Installment Due Date: November 1st
Delinquency Date: December 10
Penalty, if delinquent: 10% of pending bill + $10.00 processing fee
2nd Installment Due Date: February 1st
Delinquency Date: April 10th
Penalty, if delinquent: 10% of pending bill + $10.00 processing fee

For further information, visit the LA County Assessors website.

Orange County Assessors: Important Notes + Dates

The county fiscal year begins July 1st.

Treasurer-Tax Collector’s Office mails delinquent prior year secured notices in August.

The Treasurer-Tax Collector’s Office mails out original Secured Property Tax bills in October. Supplemental Tax bills are mailed throughout the year.

First Secured Property Tax installment is due on November 1st. First Installment Property Tax Installment Tax Payment Deadline is 5:00pm, December 10th. A 10% penalty is added after the deadline.

Treasurer-Tax Collector’s Office mails delinquent notice for unpaid First Installment and Supplemental Secured Installments in January.

Second secured tax bill is due February 1st. Second Secured Property Tax Installment Tax Payment Deadline is 5:00pm, April 10th. A 10% penalty plus $23.00 cost is added after the deadline.

Treasurer-Tax Collector mails delinquent notices for any unpaid first and second installment taxes and Supplemental Secured Installments in May.

Payment Deadline Summary

1st Installment Due Date: November 1st
Delinquency Date: December 10
Penalty, if delinquent: 10% of pending bill
2nd Installment Due Date: February 1st
Delinquency Date: April 10th
Penalty, if delinquent: 10% of pending bill + $23.00 collection fee

Delinquent Secured and Secured Supplemental accounts are transferred to delinquent tax roll and additional penalties added at 1.5% per month on any unpaid tax amounts, plus $15.00 redemption fee.

If a delinquent date falls on a weekend or holiday, the delinquent date is the next business day.

For further information, visit the LA County Assessors website.

The Association of Commercial Real Estate Executives, ACRE in industry speak, recently hosted their 2016 Commercial Real Estate Industry Forecast.

Every year, ACRE assembles a panel of Southern California’s top retail leasing and investment sales brokers to offer their prediction and insights for the year ahead.

This year’s panel addressed an issue important to Southern California shopping center landlords: The value of Mom & Pop tenants.

Interestingly enough, however, this vital nugget wasn’t reveal head on. It can to light as the panelist discussed the current state of Southern California’s retail real estate market, touching on both the upside and the challenges.

Here’s how it all played out…

Southern Retail Real Estate Market is Thriving

The panelists were in complete agreement that the Southern California retail real estate market is healthier than ever. There’s no shortage of tenants seeking space, transaction volume is surging, rents have returned to post-Great Recession rates, and current tenants are better funded, not to mention savvier operators than their pre-recession counterparts.

Retail Real Estate’s Biggest Challenge in 2016

Yet despite all the activity, panelist admitted they’re still struggling with a big problem: Dwindling supply. Make no mistake, there’s still plenty of vacancy. A great many spaces abandoned by failing tenants in the depths of the recession remain empty.

The spaces in short supply are those high visibility end-cap units on Main & Main intersections in prime locations. In short, the spaces credit tenants covet.

At this point in the economy’s recovery, however, these spaces have all been snapped up. And the leasing brokers on the panel confirmed that on the rare occasion such a space becomes available, they’re buried in a snow storm of completing LOIs.

So what happens to the other spaces? Inline units in mid-block centers? Elbow spaces in centers in secondary locations?

This is where the true value of Mom & Pop tenants is fully revealed. And the ACRE panelists shared stories that illustrate exactly how Mom & Pop tenants benefit shopping center landlords…

Silver Lake + Highland Park Street Retail

One of CBM’s team members, Valley Division Leasing Director, Dave O’Connell, had the honor of sitting on this year’s panel. And Mr. O’Connell recounted his experiences leasing several spaces to Mom & Pop restaurant operators expanding into emerging markets, specifically Silver Lake and Highland Park, two steadily gentrifying communities in northeast Los Angeles.

These are both areas most credit tenants wouldn’t consider. Historically speaking, the population and average annual household income demographics don’t meet their minimum standards.

But the demographics in these areas are evolving, and successful, non-credit tenants are eager to capitalize on these emerging markets before bigger players move int. As such, Mr. O’Connell was able to negotiate very aggressive lease rates on long term deals with well-capitalized, experienced tenants. Not traditional credit tenants, but seasoned tenants that landlords can reasonably assume – based on track record and ready funds – will succeed in the long-term.

Cerritos Shopping Center

Another Orange County-based leasing broker related his experiences leasing a recently rehabbed shopping center in the city of Cerritos. Despite the opportunity to locate in a newly remodeled property on a high-traffic street, a retinue of credit tenants passed on the opportunity. The declining tenants referenced questionable area demographics as their main point of concern.

Then a reputable regional restaurant owner, already operating three successful restaurants in Orange County, expressed interest in the property. The tenant was willing to pay top dollar for the space and commit to a long term lease. And despite the landlord’s desire for a credit tenant, she was willing to consider the regional operator based on the strength of the offer and the tenant’s successful track record.

Mom & Pop Tenants: More Than a Consolation Prize

In the scenarios above, the landlords weren’t able to secure a coveted credit tenant. But they were able to negotiate long term leases at their desired rental rate. And they were able to fill vacancies that in all likelihood would never be leased by credit tenants.

Absorbing vacancies undesirable to the majority of credit tenants, and filling them with viable businesses likely to thrive for years to come – this is the value mom & pop tenants provide Southern California shopping center landlords.

CBM Knows Mom & Pop Tenants

The bulk of CBM’s leasing transactions are with mom & pop tenants. We negotiated nearly 300 mom & pop leases last year alone, a pace we’ve maintained over the past half-decade. Our seasoned leasing team understands the needs, and eccentricities, of mom & pop tenants. And we help shopping center landlords, just like you, negotiate favorable deals. Crafting leases with mutually agreeable terms that satisfy all parties involved.

Need Help Leasing Your Retail Shopping Center?

Visit CBM’s Services page to find out more about how our expert retail leasing agents can help lease your shopping center.