The retail real estate portfolio is no accident and is not incidental to the business. As a result, most retailers have a more sophisticated real estate capability than outside providers as a requisite business reality. Still, tasks must be executed and increasingly, the financial reporting and audit requirements require more resources.
The typical challenge facing retailers is the economic climate of departmental budget cuts; with the expectation that service delivery will be as good, if not better each quarter. Certain costs/internal tasks should be critically scrutinized to determine which are truly strategic toward supporting store operations and sales, and which can be outsourced. Task work is being outsourced at an aggressive rate.
If structured properly, some retailers can exist with little to no real estate staff at all, with the exception of the people responsible for more proprietary elements of store opening and/or strategic operations.
By combining your own internal resources with experienced but scalable support staff you can reduce expenses and gain the tools that asset managers, landlords and large corporate concerns use to manage numerous property responsibilities efficiently.
This is all delivered with people experienced, aligned and incentivized to deliver. PSG can help fully implement or just supplement existing business processes that allow retailers to take their program to the next level.
PSG provides service components to supplement existing programs and provide turn-key solutions for complete service coverage.
What We’re Doing Differently
Database Software – Use non-proprietary software and ensure that either you license it directly or your outsource contract clearly states that you can assume the license if the contract terminates.
Lease Abstracting – Use seasoned real estate attorneys and people skilled in working with retail lease clauses like kick-outs, radius restrictions, gross leasable area, percentage rent and others.
CAM Audits – Do not settle for selective contingency audits. Get a thorough review on all stores so that each profit center benefits from an aggressive review and your vendor does not create a hostile relationship with the Landlord you might regret later.