Commercial Realty Investments
Statewide (Texas) Enhanced
Surplus Site Disposition
This CRI specialized division serves owners of multi-site retail operations and national retail chains with a focus on freestanding retail buildings.
You have the same problem, vacated sites with the same commercial broker making the same excuses on why they can’t dispose of this property …
“Do you have a (any!) concrete reason to believe that your tomorrow will be any different than today?”
This is a paraphrase from Dr. Henry Cloud’s groundbreaking book, “Necessary Endings.” It is time for a “necessary ending” with your current commercial brokerage firm!!
Commercial Realty Investments (“CRI”) specializes in multi-site retail operations / chains across Texas. What sets us apart is a focused and streamlined mantra:
We handle subleasing, sales, and lease termination negotiations for surplus; usually freestanding, properties for retail, office, and medical applications. CRI efficiently handles these assignments throughout Texas.
Here’s the unfortunate truth of how your companies current surplus sites are viewed by other commercial real estate (“CRE”) firms. All CRE firms want your surplus sites for sale and begrudgingly take on less desirable sublease properties. “For sale” surplus portfolios are typically handled by the senior brokers and the sublease properties are usually doled out to the less experienced junior brokers. This is the polar opposite of who needs to be handling the sublease properties!
Why is this?
1. Subleases require specialized knowledge in complex deal structure. CRI routinely interacts with sub-landlords and the prime lease agreement for necessary approvals and ensures restrictive covenants are upheld and addressed in the final agreement.
2. Tenant representatives (who junior listing brokers wrongly focus on) largely avoid presenting sublease opportunities because of their complex nature. Tenant reps universally take the path of least resistance and the fewest hurdles to a commission is the focus; sometimes to their clients’ detriment.
Are your companies sublease or disposition properties moving off the books? CRI has a consistent tenant flow, which makes us a great choice to backfill your vacant sites. CRI recently had an assignment in Pasadena, Texas for a 10,000 sf MRI operator looking for multiple sites. We targeted a vacant freestanding restaurant that had no leasing or broker signage information on the property. CRI had to conduct an address search through the tax rolls to find the owner (a publically traded restaurant). We were shocked to see that this asset had been listed for over 1 year by a national CRE firm and did not even have a picture OR salient economic info on either the owners or the CRE firms website!!
No wonder sublease properties languish on the market making your job as asset manager significantly more difficult, if not impossible!
THE CRI SOLUTION
1. CRI’S streamlined, transactional velocity approach for vacated surplus/disposition properties for either sale or sublease includes:
- We conduct a market survey to make sure the asset is priced correctly.
- CRI’s signage (banner, street sign, and/or door signage) is prominent and in accordance with municipalities code restrictions for signage.
- Your asset is exposed to our stable of end users, subtenant prospects already financially qualified, and active investor base.
- Extensive exposure/advertising to end-users and to a lesser extent (for reasons already listed), the brokerage community.
- Each sublease/sale proposal is custom tailored to your requirements to make internal presentation easier.
- CRI stays active through sublease commencement/physical occupancy or close of escrow to leave nothing to chance. CRI’s deals STICK!
- The majority of our transactions are direct with the end user (without the assistance of tenant reps). We take a very proactive approach to solving your problem.
2. CRI’S enhanced services for underperforming sites currently occupied.
This is a more global approach that no other CRE firm is currently pursuing. Our research shows that underperforming locations; those in operation but not yet bad enough to close, is a huge problem for our clients.
This would be similar to a large commercial property with a lender who starts to see M&M liens, missed payments, etc. and places the property into “special servicing” where the lender requires extensive reporting and updates. It is not in foreclosure (yet) but underperforming and of concern.
Our data shows that underperforming sites can languish in this category for 6 months to over 2 years! Nearly all of these underperforming stores are usually shut down and represent a HUGE drain on the corporation’s earnings during this “hoping things turn around” time. The real estate director of one of our Fortune 500 clients recently disclosed that he had “at least 25-30 of these stinkers and probably more” in Texas. CRI had 10 vacant, freestanding sublease assets at that time meaning the upcoming pipeline of properties to be ultimately vacated was 300% more than CRI’s current listing base.
The dilemma is how to market these sites in operation without alerting the on site staff that the property is slated to be closed down. CRI utilizes a radically different protocol with a confidential marketing campaign. The net effect to your company is to weed these underperformers out early and avoid the earning drain.
This marketing method will be discussed on the phone or in a meeting with appropriate personnel only. It is a “necessary ending” that will make your real estate department more profitable while culling out the headaches early on.