Why Retail ?
What About Online Retail ?
There has been a great deal of negative press in the media regarding the “death of retail” and the impact of Amazon’s dominance in the market. However, everyone should keep in mind:
- The retail business and the business of retail real estate has been constantly evolving since the dawn of time.
- The “death of retail” media hype is always about “publicly traded” companies that have been unable to compete with the Amazon’s of the world.
- Retail Real Estate on the other hand is always adapting, by leasing to new tenants who either can compete or do not compete with online e-commerce retail.
The Fund Manager’s investment strategy and acquisition criteria acknowledge the ever changing consumer buying habits from bricks and mortar to e-commerce.
Back to the Basics
Retail centers fill basic consumer needs by providing an easy way to access the products and services needed every day. Today, centers are leasing to tenants that merge convenience and experiences with destination and services that typically require close proximity to their consumer base.
The Fund targets retail centers with a tenant mix that predominately provides products and services that are not typically available through Amazon or other internet distribution platforms. Some examples include: restaurants, grooming services, mattress stores, fitness centers, cell phone stores among others.
Target Rich Environment
Retail centers are ubiquitous, with more than 110,000 centers in the United States. The Fund Manager will selectively choose centers from a large inventory of “GAP” properties regularly coming on the market at any given time.