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Retail T.V. is brought to you by founding sponsor Faris Lee Investments
the largest retail investment advisory firm in the nation.
Rick Chichester is president and CEO of Faris Lee investments the nation's
largest retail specialized investment advisory firm.
The firm provides high analytics on financial underwriting and positioning
with a focus on maximizing value at the property level.
In this segment, Rick discusses the challenges and opportunities in retail
investment today, and how to best position against changing consumer
habits and demographics.
The biggest challenge in retail today outside of the specialty itself
retail is highly complex very dynamic and
it is it is literally based on the the consumer
and the consumer habits
and challenged if you will or led by the economy.
And it becomes very important to the economy and that
three-quarters of our economy is based on a consumer purchases
and they make those purchases online or through retail sites...
but they're all retail focus.
So the code tenancies and the makeup,
the branding, the identity, becomes very important and ease for that consumer to
shop.
The investment market is recovering rather nicely right now,
the caution that we put out there is to really understand why is it recovering
and then we will always want to go back to the investor to make sure that we
understand their financial investment strategies as well as the property
strategies,
why are they investing actually out the property level.
So you want to set your financial strategies to the long-term vision
at the property level and the tenancies
look at it from the standpoint of the brady consumer what are those habits
today what are they going to be in the future understand the demographics
behind it and then underneath uh... that and and foundational to that, is where is
all about relative to the economy.
Uh we focus as much if not more on the strategies at the investment level
and at the property level as we do to the transaction itself.
His people are now moving into the middle which is the uh...
uh... multi tenant
and those are doesn't challenged in many cases because of the
quality the tenancies the strength of those tenets uh... in in many cases
most of us are challenged with vacancies
with
property that probably needs to be refreshed...
. they've been challenged in the
downturn of the the recession, challenged financially so a lot haven't
been able to put the proper investments backed into them.
Then you look at this from the standpoint of retail. Retails being
challenged in that
the consumer tube the buying behavior has changed so much
and the biggest these letters are much demographic.
If you look at what drove the economy the last ten years it was the back end
of the baby boom generation.
That generation today's is getting into their 50's and beginning to plan for
retirement.
The next generation right behind it even if they were to buy at the same levels
uh there's 25 million less of them and there are the baby boom.
So the capacity just to purchase, the purchasing power this less.
The opprotunity now is how to rephrase should retenant to reposition the
stores
that's where the that's what makes retail exciting for the investors
is because it really is he business within a business it's not a static
investment.
To make the multi-tenant properties really excel in terms of value
is to find the right properties
with the right dynamics in the right markets and uh... then to bring the
creativity
of how to bring the consumer to that property.
That is true the tenets and and what's them
uh... the experience he is going to get when they they come to that
property.
Retail T.V. is brought to you by founding sponsor Faris Lee
Investments, the largest retail investment advisory firm in the nation.