The key to successful retail property investment isn’t just counting customers walking through the door – it’s understanding what they actually buy, according to Charlie Friedler, Vice President of Leasing at CityView Commercial.
“The biggest thing we look at is retail sales. That tells us if there’s a future,” Friedler explains. “Foot traffic could be great but retail sales could be really low…it just showed that there’s no economic growth.”
Friedler says his firm has dramatically changed how they evaluate and pursue retail opportunities, heavily investing in technology and data analytics.
“We really invested in AI,” he notes. “We use Costar, Crexi, Placer AI…those leads are the most important to us, because those are people reaching out to us versus us reaching out to them.”
According to Friedler, successful retail property management now requires a sophisticated grasp of demographics and market segmentation, sales performance by retail category, traffic patterns and peak usage times, and consumer behavior analytics. “We take a look at that demographic. We make sure whoever we’re taking makes sense for the shopping center,” he explains.
Friedler emphasizes that different properties require different approaches to tenant selection. For larger properties like their Atlanta mall, they focus on major anchors: “We’re looking for bigger stores like Primark, coffee shops like Starbucks…we’re not taking that Mom and Pop because it just doesn’t make economical sense.”
However, smaller centers often perform better with local businesses: “With shopping centers, I really focus more on Mom and Pop…sometimes you just gotta be realistic.”
Modern leasing now relies heavily on technology to identify and evaluate potential tenants, with Friedler citing the use of AI-powered lead generation, retail lease tracking systems, foot traffic analysis, and sales performance monitoring as essential tools for making informed decisions.
According to Friedler, the future of retail property management will increasingly depend on sophisticated data analysis and strategic tenant selection. “You have to be careful with who you bring,” he notes, emphasizing that every tenant decision must be backed by solid market analysis.
Explore similar articles from Our Team of Experts.
Jared White, Managing Partner at Quadrum Global, argues that traditional market data often lags behind the real opportunities in emerging real estate markets. Instead, he points to a more nu...
A new trend is emerging as East Coast boat owners realize they can purchase weekend homes on Fort Myers Beach for less than their monthly marina fees, creating an opportunity that is changin...
