Retail Real Estate + Development

Real Estate Development

Spring 2013

Gary Fogg + Dan Mandelbaum, instructors

The success of the shopping center is driven by a combination of the strength of the real estate and the retailer. In the case of retail real estate, the success of the retailer is arguably more correlated to the fundamentals of the underlying real estate than the tenants of other asset classes, such as office and industrial. This course discussed retail real estate from the perspective of both the retailer and the landlord / developer. A thorough understanding of the retailer’s business model increases the likelihood of success for retail real estate investors and developers. At the same time, the class reviewed the primary considerations of the retail developer and owner, including tenant mix, shopping center design, leasing and valuation. A strong emphasis was placed on leasing and financial valuation. The lease not only outlines the economics of rent and expenses; it also establishes various rights and restrictions of both the landlord and that tenant.