Melville, NY, April 29, 2021 / PR Newswire / – Grocers need to reconsider how their real estate will function in the post-epidemic world, writes Joe McKeska, A senior managing director A&G Real Estate Partners, A April 26 Idea piece for progressive groceries.
Although many chains have performed well over the past year, consumer spending is returning to food, live entertainment and travel. “That is, many grocers need to redouble their efforts to improve the fundamental vulnerabilities they were able to understand during epidemics, such as supper in-store experiences and adequate omnibus infrastructure,” he advises.
Improving real estate is an important way to free up the capital needed to fix those problems. In the column, Mekeska offers four specific tips.
First Restructure your real estate and business plans. In managing real estate day by day, he notes, grocers will lose the need to support the long-term strategies of their portfolios. In many chains, for example, new approaches to the eCommerce supply chain change the parameters for the store track and location. “Your real estate plan should last for many years and be fully synchronized with all such strategic considerations,” McKeska writes.
The senior grocery manager also advises grocers Plan ahead for lease expirations / extensions and store closures.
Extending the lease before its expiration date is another way to create increased value, Mexesca advises. He cites a scene where the grocery store plans to renovate several million dollars. Agreeing to extend the lease for 10 years significantly increases the resale value of the grocery property, which is possible in seven figures. “This gives the landlord a good reason to offer rental incentives, contribute capital to the redesign and / or upgrade the center,” McKeska writes.
This is important Make tough decisions nowEspecially for closing efficient stores. “This is more important than ever in measuring, integrating and relocating your stores as needed,” says McKeska. “By making tough decisions in advance, grocers get the time they need to pursue early lease decisions and find suitable alternative tenants.”
Finally, Magsaysay is fully asking for groceries Appreciate their ability, Which was growing before the epidemic, but is still strong today.
This is because landowners aim to increase the productivity and value of grocery-anchored property by adding exterior, drive-through lanes and other amenities. However, due to the security lease restrictions commonly experienced by grocers, landowners are often unable to pursue such programs without the permission of the grocery seller.
“With this powerful bargaining chip, you stand to get lower rent and more favorable terms in exchange for giving the landlord more freedom to redesign the property and recreate common areas,” concludes Mexico.
Prior to joining A&G in 2016, he served as Senior Vice President of Real Estate for Southeastern Grocers in Mexico. He previously held top real estate positions, including Group Vice President of Real Estate, during his 17-year career with Superpower, Inc. and leading companies.
Full article available
About A&G Real Estate Partners
A&G is a team of experienced business real estate professionals and material experts who provide strategies designed to give clients the highest value for their real estate. Key areas of expertise include aggression cost reduction, lease termination, positions, real estate sales, diligence due to real estate, appraisals, and facilitation of growth opportunities. Using its marketing knowledge, reputation and advanced technology, A&G has advised the country’s most important retailers and companies in healthy and miserable situations. The company’s team is approaching rent reduction and aggression cost savings Billion 8 billion When selling more, on behalf of customers in every real estate sector Billion 12 billion Centered properties and leases. Founded in 2012, it is headquartered at A&G Melville, NY For more information, please visit: http://www.agrep.com/
Press Contacts for A&G: Jaff Communications (908-789-0700), Bill Barnes, [email protected] Or Eliza Grants, [email protected]
Note to the media: Joe McKeska Available as a source for articles on retail, restaurant and grocery real estate. See media contacts at the end of the publication.
SOURCE A&G Real Estate Partners