Shopping Centers Today

AUG 2017

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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32 S C T / A U G U S T 2 0 1 7 of credits and incentives consulting for Dallas-based Ryan, which provides tax services to local, state and federal govern- ments. Having set up the public-private partnerships group at Target, where she worked for seven years, Simmons en- countered this notion repeatedly as she traveled the country negotiating TIF and other incentives. While nearly every state now allows for TIF, much work remains on promoting its adoption at the local level, Sim- mons says. "You've got a lot of states that have passed legis- lation to allow for TIF, but so many jurisdictions have never done this before," she said. In working with inexperienced officials, it is critical to go in with an understanding of any state regulations and local ordinances, Simmons says. In the case of a major retailer, the team should also take the time to explain to the officials the way the site-selection process works. The officials may not understand that an expanding chain will scout twice as many stores as it actually intends to open, and that each prospec- tive location is in intense competi- tion with similar places around the country. "Just because your location meets the standard threshold for the retailer, that does not mean that the deal is going to get done without incentives," Simmons said. In touting their sites, local offi- cials might also put disproportionate emphasis on such metrics as pro- jected sales, without weighing other important factors. "You might have a market in the Northeast that has great potential sales," said Simmons, "but are they going to require you to make the facade of your store look like it is from Colonial times? Are they going to allow you to put a sign lit up high and above the buildings? Will you face higher security costs?" The officials may fail to realize that a competing location in the Midwest, one with lower projected sales but no such costly restrictions, could end up winning the day merely because that location has ponied up TIF or other incentives, she observes. "It may be cheaper for me to do that store in Midwest USA," Simmons said. "Higher expenses aren't included in that sales number. They reduce your profitability for that store. Every store has to stand on its own." Likewise, a retailer's real estate department typically works with a set budget. Typically, the goal is to max- imize the total number of profitable stores within that constraint. With- out incentives from the city, some prospective locations simply cannot compete with their cheaper compet- itors around the country, Simmons says. "If I have a store that is going to cost me $25 million to build and For over 80 years, retailers looking to land in the right space have chosen to lease from Milbrook Properties time and time again. Maybe that's because every property we add to our east coast portfolio is always the right move. Contact us today for our acquisition criteria and exciting leasing opportunities. Charles Hirsch | chirsch@milbrookproperties.com Tom LiPuma | tjlipuma@milbrookproperties.com Pascal Spagna | pspagna@milbrookproperties.com Rubin Pikus | rpikus@milbrookproperties.com Contact us today to set up an appointment to meet with our leasing representative at the Florida Conference. Always the right move. 42 Bayview Avenue | Manhasset, NY 11030 T 516.869.1240 F 516.869.8576 www.milbrookproperties.com NEW YORK Adams Commerce Plaza Hauppauge | 29,412 SF Baldwin Square Baldwin | 77,804 SF Bay Shore Commons Bay Shore | 109,295 SF Bethpage Plaza Bethpage | 73,500 SF Bi-County Commons East Farmingdale | 69,947 SF Bohemia Commons Bohemia | 78,100 SF Burnside Avenue Bronx | 16,904 SF Cherry Valley Plaza West Hempstead | 34,800 SF Huntington Crossroads Huntington Station | 13,863 SF Huntington Shoppes Huntington Station | 16,819 SF Kenmore Plaza Sea ford | 22,086 SF Lake Shore Plaza Lake Ronkonkoma | 99,565 SF Main Street Promenade Nyack | 29,090 SF Spring Valley Marketplace Spring Valley | 324,818 SF The Shoppes at Market Street Nanuet | 70,432 SF Waverly Plaza Holtsville | 10,750 SF NYC Various opportunities in all boroughs NEW JERSEY Aviation Plaza Linden | 644,565 SF Edison Plaza Edison | 103,996 SF Princeton Meadows Plainsboro | 66,000 SF Royal Plaza East Windsor | 24, 750 SF FLORIDA Flamingo Market Place Pembroke Pines | 140,046 SF FMS Corners Pembroke Pines | 37,644 SF Hollywood Palms Hollywood | 214,902 SF Point Plaza Temple Terrace | 97,087 SF Shoppes at Margate Margate | 57,758 SF Shoppes at Pembroke Pembroke Pines | 81,296 SF TIF

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