Shopping Center Business

MAY 2015

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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MAY 2015 • SHOPPING CENTER BUSINESS • 325 McGuinness: We will look for markets that meet our criteria of job, wage and population growth. Within these markets, we will pursue accretive acquisitions in prime locations with higher-than-average traffic patterns and significant barriers to entry. SCB: How will the national retail industry continue to evolve? McGuinness: We think that hyper- segmentation will be an important trend. The one-size-fits-all grocery store or big box is going to have trouble succeeding if they don't understand their customer. Target and WalMart, TJMaxx and Ross — they really understand their customer profiles and different lifestyles. Big data is helping these national retailers under- stand how they can successfully meet the needs of their customer segment — and as a partner with our retailers, that is exciting for all of us. SCB: There are lots of shopping center operators out there; what will make you different? McGuinness: First, it is important to remember that our bread-and-butter is the open-air shopping center business and we believe we understand that market very well. For years, we have been hard at work building strong relationships with our retailers, using joint marketing efforts to bring traffic to our centers. We know our markets and we know our retailers and that will give us the currency we need to be innovative and forward thinking in running our open air properties. SCB: What are some of the biggest changes you are seeing with your retail tenants? McGuinness: We are seeing strong in- terest from small businesses — either in- dependent owners or franchisees. These customers are moving into vacated big box spaces that we have split to accom- modate new space needs. At one point, people used to say that the Internet will mean the death of shopping centers. But in fact, shopping can happen anywhere, thanks to our laptops, tablets and cell phones. Customers may find items they like on the web but they still want to go into the store to touch it and feel it. And, I haven't seen an electronic gadget yet that can replicate a great bricks and mortar shopping experience. Retailers are paying attention to both their on-line and store presence. SCB: Will InvenTrust be spun off, similarly to Inland Western REIT a few years ago (that became Retail Properties of America) or will it remain within the Inland fold? McGuinness: InvenTrust Properties Corp. is a completely independent en- tity with our own strategic direction and long-term plan. On December 31, 2014, we completed the final piece of our self- management process by integrating with the property management team. Self-manage- ment has allowed us to expand our corpo- rate infrastructure with important senior level hires, and upgrade technology processes and systems, so that we can operate as a fully operational and independent compa- ny. Following the suc- cessful spin-off of our lodging platform we remain committed to executing our strategic initiatives. We will con- tinue to explore ways to optimize and tailor our retail and student hous- ing platforms. We are also committed to work diligently to successful- ly maximize value for our stockholders. SCB: With the investor pool for retail properties continuing to grow, how does InvenTrust Properties stand out when pursuing a property? McGuinness: InvenTrust Properties has a best in class acquisitions process. We have a savvy, experienced team work- ing on acquisitions and due diligence – so we can work fast to close a deal. This is an area where our local market knowledge really aids us in asking the right ques- tions and providing quick answers when evaluating deals. We have full discretion on the assets we want to buy, so this can help the process move quickly, as well. Plus, we are creatively flexible. We will look at different deal structures, and work with sellers on the timing of closings to create win-win situations. We really are in- novative in our deal making — we recently acquired a center in the Denver market by trading one of our California centers. The owner wanted out of the Colorado market and was highly attracted to our California property, which was not a targeted area for our portfolio growth. There was a mu- tual benefit in the transaction — again, an example of partnering for success. SCB Thomas Bartell, Executive Director thbartell@windhammaine.us WINDHAM ECONOMIC DEVELOPMENT CORPORATION 8 School Road, Windham, ME 04062 • (207) 892-1936 WindhamMaineRetail.com • WindhamMarketplace.com • WindhamMaineEDC.com Windham serves a population of over 61,000 people as the retail and services area for the beautiful Sebago Lakes Region, a region that receives over 500,000 visitors annually. Windham is located in the center of Cumberland County, Maine's largest, and the economic engine for the State of Maine. Windham is part of the Portland Maine Metropolitan Area. Windham Maine Marketplace for the Sebago Lakes Region! • Windham, Maine Development Opportunity • 965 Roosevelt Trail • Hotel & Business Center COMMERCIAL PAD SITE FOR SALE OR LEASE Construction CALL 207-451-8288 Erik Heyland eheyland@heylanddevelopment.com Heylanddevelopment.com Tim McGuinness, president and CEO of InvenTrust Properties.

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