We have commented over the past few months about the accelerating trend toward online retailing and its significant impact on the mall sector, especially in “B” locations. Champions of brick and mortar retailing challenge that the online percentages are not relevant when compared to sales in malls, strip-centers and other conventional outlets. Alas, historical conventions no longer carry weight, and REIT investors are fleeing the sector depressing stock prices by as much as 17% for the B-mall category companies.
There is no doubt about it, online retailing is swinging a one-two punch to malls but we need to be careful, and not over-estimate where the trend will take us. In my view, secondary and tertiary malls are kaput, but strong submarket and premier malls will thrive, albeit with a significant modification to the mall model. Sears, Penny's, Macy's, and GameStop Corps have announced the closing of 510 stores over the next year. It doesn't take a rocket scientist of recognize that many of these closings will deal a mortal blow to weaker malls, but on the premium end of the market the closings will actually provide significant upside as mall owners reposition with lifestyle, new entrants such as Amazon's Apple-like stores and the like.
As with any trend there will be the winners and losers, but for now, take a look at some of the bargains in the Retail REIT sector as investors overreact and provide a play for bottom fishers.
Job Listings
HUDSON VALLEY PROPERTY GROUP
Asset Manager, Associate/Analyst
(NEW YORK, NY) Position will support the development staff and principals of Hudson Valley Property Group by analyzing, monitoring, and reporting on the performance of HVPG's portfolio. (Sponsored Job)
WEWORK
Account Manager – Broker Partnership
(AUSTIN, TX) Account Manager will be responsible for the business development and account management surrounding brokers and other real estate partners (in the South region) who refer new members to WeWork. S/he will be responsible for developing and maintaining relationships with internal and external stakeholders across the company and globe.
UBS
Real Estate Performance Data Analyst
(HARTFORD, CT) Analyst will assist in management effort to move the organization toward a more analytical, data driven investment management/decision making process. Role will rely on and involve collaborative input from all segments of the firm throughout the change process and beyond.
AVISTONE, LLC
Leasing Manger
(LAGUNA NIGUEL, CA) Duties include: negotiating new and renewal leases directly with tenants or via property managers or third party brokers; and presenting comprehensive leasing and capital plans for each asset with the goal of maximizing rents and long-term cash flow.
SONNENBLICK-EICHNER
Investment Associate/Analyst
(BEVERLY HILLS, CA) Analyst will perform financial analyses and market research, prepare investment or financing memoranda, assist in the marketing of equity and debt transactions, manage the due diligence process and evaluate potential investment and financing proposals.
USAA REAL ESTATE COMPANY
Marketing Manger
(SAN ANTONIO, TX) Manager will contribute to the full spectrum of marketing support for the organization, to include branding, communication and events. Additional duties: advisor to various internal divisions to develop creative concepts and content for integrated marketing projects, such as websites and videos; and generating marketing materials.
HAMMES PARTNERS
Asset Manger
(MILWAUKEE, WI) Position will be responsible for managing a portfolio of stabilized assets as well as assets under development. Role will also have primary responsibilities for developing and executing asset management strategies related to individual properties and property portfolios.
AVALONBAY COMMUNITIES
Investments Director
(ARLINGTON, VA) Director will be responsible for participating in all phases of the multi-family investment process. This will include sourcing of potential acquisitions, managing the due diligence process, implementing redevelopment activity post-closing for acquired communities, and managing the disposition process for assets will be sold.
We have commented over the past few months about the accelerating trend toward online retailing and its significant impact on the mall sector, especially in “B” locations. Champions of brick and mortar retailing challenge that the online percentages are not relevant when compared to sales in malls, strip-centers and other conventional outlets. Alas, historical conventions no longer carry weight, and REIT investors are fleeing the sector depressing stock prices by as much as 17% for the B-mall category companies.
There is no doubt about it, online retailing is swinging a one-two punch to malls but we need to be careful, and not over-estimate where the trend will take us. In my view, secondary and tertiary malls are kaput, but strong submarket and premier malls will thrive, albeit with a significant modification to the mall model. Sears, Penny's, Macy's, and GameStop Corps have announced the closing of 510 stores over the next year. It doesn't take a rocket scientist of recognize that many of these closings will deal a mortal blow to weaker malls, but on the premium end of the market the closings will actually provide significant upside as mall owners reposition with lifestyle, new entrants such as Amazon's Apple-like stores and the like.
As with any trend there will be the winners and losers, but for now, take a look at some of the bargains in the Retail REIT sector as investors overreact and provide a play for bottom fishers.
Job Listings
HUDSON VALLEY PROPERTY GROUP
Asset Manager, Associate/Analyst
(
WEWORK
Account Manager – Broker Partnership
(AUSTIN, TX) Account Manager will be responsible for the business development and account management surrounding brokers and other real estate partners (in the South region) who refer new members to WeWork. S/he will be responsible for developing and maintaining relationships with internal and external stakeholders across the company and globe.
UBS
Real Estate Performance Data Analyst
(HARTFORD, CT) Analyst will assist in management effort to move the organization toward a more analytical, data driven investment management/decision making process. Role will rely on and involve collaborative input from all segments of the firm throughout the change process and beyond.
AVISTONE, LLC
Leasing Manger
(LAGUNA NIGUEL, CA) Duties include: negotiating new and renewal leases directly with tenants or via property managers or third party brokers; and presenting comprehensive leasing and capital plans for each asset with the goal of maximizing rents and long-term cash flow.
SONNENBLICK-EICHNER
Investment Associate/Analyst
(BEVERLY HILLS, CA) Analyst will perform financial analyses and market research, prepare investment or financing memoranda, assist in the marketing of equity and debt transactions, manage the due diligence process and evaluate potential investment and financing proposals.
USAA REAL ESTATE COMPANY
Marketing Manger
(SAN ANTONIO, TX) Manager will contribute to the full spectrum of marketing support for the organization, to include branding, communication and events. Additional duties: advisor to various internal divisions to develop creative concepts and content for integrated marketing projects, such as websites and videos; and generating marketing materials.
HAMMES PARTNERS
Asset Manger
(MILWAUKEE, WI) Position will be responsible for managing a portfolio of stabilized assets as well as assets under development. Role will also have primary responsibilities for developing and executing asset management strategies related to individual properties and property portfolios.
AVALONBAY COMMUNITIES
Investments Director
(ARLINGTON, VA) Director will be responsible for participating in all phases of the multi-family investment process. This will include sourcing of potential acquisitions, managing the due diligence process, implementing redevelopment activity post-closing for acquired communities, and managing the disposition process for assets will be sold.
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Anthony J. LoPinto
Tony LoPinto is the Global Sector Leader of Korn Ferry’s Real Estate Practice and founder of SelectLeaders. For the past 18 years LoPinto has been serving his clients with deep knowledge and perspective on talent needs and organizational challenges to public and private companies – knowledge gained from a 25-year career in real estate. Prior to his current position, he founded and served as chief executive officer of a boutique real estate executive search firm, where he oversaw offices in New York, Chicago, Washington, DC, San Francisco and Los Angeles. He has successfully led several high profile search engagements for chief executive officers, directors and a wide-range of executive level positions across all industries and sectors. He earned a Bachelor of Arts degree in European history from Loyola University in Chicago.
