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Retail Technology Advances

Developing financially successful retail centers is a challenging task anywhere in the world. Investors and managers involved in retail assets must be sound strategic planners who can successfully assimilate a number of disparate factors, such as demographics, macro and micro economics, as well as cultural and political circumstances. Rising e-commerce makes a competitive business environment even more acute.

Successful strategies require engaging shoppers with the right product, creating a tenant mix that suits geographic and regional trends, and accommodating local culture, demographics, regional economics and other factors. Many malls are adding themed restaurants and attractions to attract more customers. As consumers start to buy more of their clothing items online, dancing fountains, amusement park experiences, and themed restaurants are almost as important to attracting footfall as an anchor tenant’s spring clothing fashions or new video game boxes.

A mall can be regarded as an ecosystem that needs full financial, maintenance and leasing information to be meaningful and easily accessible. Across all markets—the Americas, Asia, Europe, Australia, the Middle East—the tendency toward large malls mean operators must be able to handle large tenant counts. For example, due to the sheer size of the shopping area, instinct and walk-throughs are insufficient for detecting inefficiencies and troubled tenants. Only reliable data and metrics will serve that purpose.

A Single Platform Global 'Glue'
With the retail sector generating more data in a single month than many other vertical real estate markets do in a year, and with investors expecting strong returns for their money, the imperative to store, maintain, manage and utilize retail property data bonds the industry like glue. These operations are as important as inventory, location and demographics in determining the success of a retail center. As a result, retail owners and operators around the world are turning to cloud-based business-wide systems such as Yardi Voyager® to manage the enormous amount of data involved in retail management.

This type of systems lets companies execute all property, financial and ancillary operations such as performance measurement, period closing, invoice processing, business intelligence, budgeting, and more from a single information source. This capability mitigates risk and delivers analytics to desktops and mobile devices in real time. Other applications integrate with a retailer’s web presence to give consumers, investors, property managers and vendors an online means to interact in the retail ecosystem.

A business-wide platform also generates business intelligence that unifies property and accounting information to give property managers and investors crucial analysis on retail spaces. When an unhealthy tenant can’t pay rent, for example, the landlord suffers, as does the investor. Because percent rent on tenant sales boosts revenue, the monthly sales trend for a tenant is very important for investor ROI. If a coffee shop is selling $1 million worth of coffee per month for two years in a row, but the last three months have been closer to $500,000 per month, that’s a graphic indicator that traffic patterns might have changed. That coffee shop will go out of business if the landlord doesn’t act, and the investment will suffer.

With portfolios broadening across geographic boundaries, ongoing competitive and regulatory pressures and evolving consumer shopping habits, operators and investors cannot afford to underestimate the importance of managing operations as effectively and efficiently as possible. The value of shaping operational and financial information into meaningful accurate metrics can’t be ignored. Whether a European high street, a rural outlet in the United States or a Middle Eastern mega-mall, traditional shops and shopping are here to stay for the foreseeable future despite e-commerce competition, economic slumps and other challenges. But to thrive, retailers and investors must collaborate to adopt new ways of engaging consumers while delivering services that enhance relationships, drive down costs and increase value.

Robert Teel, SVP, Global Solutions, Yardi
Rob Teel is responsible for product development, support and implementations of Yardi's Commercial Property Management and Investment Management suites. Rob joined Yardi Systems in 2003, and he has nearly 20 years of property and financial systems implementation experience.

This Week’s Sponsor

Now in its fourth decade, Yardi® is committed to the design, development and support of software for real estate investment management and property management. With the Yardi Commercial Suite™, Yardi Multifamily Suite™, Yardi Investment Suite™ and Yardi Orion™ Business Intelligence, the Yardi Voyager® platform is a complete real estate management solution. It includes operations, accounting and ancillary processes and services with portfolio-wide business intelligence and platform-wide mobility. Yardi is based in Santa Barbara, Calif., and serves clients worldwide from offices in North America, Asia, Australia, Europe and the Middle East. For more information, visit www.yardi.com.

UPCOMING REALCOMM WEBINARS

CRE Tech Innovation Showcase - Uncovering the Next Generation of New Ideas - 7/12/2018

Never before in the history of the Commercial Real Estate market has technology been so prevalent. Since 2009, hundreds—if not thousands—of companies selling tech to the Commercial Real Estate Industry have emerged. Estimates now suggest there are more than 2,000 new CRE Tech companies in the space. The sheer number of new companies makes it almost impossible to keep up and organizations are struggling to establish an effective process to discover, organize, vet, test and implement new technologies. This webinar will evaluate the categories of technologies, best practice criteria, and clarify different solutions that are making their way to the top of the list.

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Tom Shircliff Intelligent Buildings
Tom Shircliff Co-Founder Tom Shircliff is a co-founder and principal of Intelligent Buildings, a nationally recognized smart real estate professional services company that was
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Tom Shircliff
Co-Founder
Intelligent Buildings
LinkedIn

Tom Shircliff is a co-founder and principal of Intelligent Buildings, a nationally recognized smart real estate professional services company that was started in 2004. Intelligent Buildings provides planning and implementation of next generation strategy for new buildings, existing portfolios and urban communities. Tom is a speaker and collaborator with numerous universities and national laboratories, a gubernatorial appointee for energy strategy and policy and founding Chairman of Envision Charlotte, a Clinton Global Initiative.

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Chip Pierpont GSA
Chip Pierpont Director, Facilities Operations & Technologies Chip Pierpont manages and provides expert guidance on the development and execution of requirements/solutions for building operations and technologies
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Chip Pierpont
Director, Facilities Operations & Technologies
GSA

Chip Pierpont manages and provides expert guidance on the development and execution of requirements/solutions for building operations and technologies for General Services Administration (GSA), a Public Buildings Service (PBS) government agency tasked with managing government buildings and real estate, providing product and service procurement support, and developing policies and regulations. The landlord for the civilian federal government, PBS owns or leases 8,700 assets, maintains an inventory of more than 370 million square feet of workspace for 1.1 million federal employees, and preserves more than 481 historic properties.

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Brian Sutherland Yardi
Brian Sutherland Industry Principal, Yardi Elevate
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Brian Sutherland
Industry Principal, Yardi Elevate
Yardi

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Rahul Shira Philips Lighting
Rahul Shira Product Mktg. Manager
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Rahul Shira
Product Mktg. Manager
Philips Lighting