When Leveraging Geography Fuels Portfolio Growth

Collins: “We are getting both geographic concentration and we are able to leverage our staff to build our market knowledge in both target markets and provide our tenants best-in-class management.”

OAK BROOK, IL— In the right retail market, leveraging surrounding geography can help fuel major portfolio growth. InvenTrust Properties Corp. is utilizing this model (Hub and Spoke) to boost market knowledge and extend its reach to adjacent markets. For example, that means the firm’s Raleigh office is a springboard for investment in the Carolinas and the office in Denver allows for investment in the Front Range of Colorado. The model is working. InvenTrust purchased approximately $330 million in retail real estate in April 2016 alone, and the firm has no plans on slowing down in their target markets. To get an inside look at this model and how it has evolved, we sat down with David F. Collins, EVP of portfolio management at InvenTrust, for an exclusive interview.

GlobeSt.com: Tell me about your hub-and-spoke model. How does it work?

David F. Collins: We view the hub-and-spoke model as a differentiator for us in terms of being competitive in the marketplace, driving operational efficiencies and enhancing local market knowledge. It all fits into an overall plan to push decisions to the field, getting the teams closer to the properties and being able to service properties in a concentrated geographic area as well as adjacent markets. We have been buying large, trophy assets in high population and high-income growth markets. Through the hub-and-spoke model, we can expand our regional footprint and put acquisitions, operations and leasing staff on the ground where we are buying properties or interested in buying properties. By using this concept, we are able to take a market like Austin and service San Antonio, which is 80 miles away. We are getting both geographic concentration and we are able to leverage our staff to build our market knowledge in both target markets and provide our tenants best-in-class management. It has evolved and it is dynamic. As we cycle out of smaller markets and focus more on larger high growth markets, the hub-and-spoke model becomes an integral part of our strategy.