Malls.
The time to invest & capitalize is now.
How SREG’s Industry-leading Investment & Operating Platform is positioned to capitalize on a historic mall opportunity
The reality.
Many retailers have adapted and thrived in the face of changing consumer behavior and technology.
Foot traffic and sales still up
- 2022 – Sales Up 10.7% over 2019
National Retail Federation forecasts retail sales growth between 4%-6% in 2023
Placer.ai shows 2022 indoor mall traffic 5.5% above 2021, higher than Open-Air Lifestyle Centers, Outlet Malls and Grocery-Anchored Shopping Centers
Retailers focused on brick and mortar
Today’s Reality
- RNew Store Openings Increased by 20%
2021, JLL
- R52% of Consumers prefer to shop in-store vs online
National Retail Federation
- R76% of Retailers Plan to Open New Stores
2022, National Retail Federation
As Kevin Johnson, CEO of Starbucks, stated, ‘The margins are significantly lower in the online business, particularly when you factor in the cost of delivery and returns.’
“The Future of Retail Isn’t Direct-to-Consumer. How Brands Are Embracing Stores in 2023. Businesses that once thrived on e-commerce only are stepping into physical retail to keep shoppers loyal”
DTC Brands Shift to Physical Stores
As the digital space becomes crowded and online advertising expensive and noisy, DTC brands continue to invest in physical stores to drive customer growth.
Examples include
The DTC Reckoning Is Coming for Fashion!
Mounting digital marketing costs and e-commerce readjustments have put the viability of pure direct-to-consumer business models into question. The State of Fashion 2023 reveals that most brands will need to diversify their channel mix beyond DTC to generate growth.
Sales are up.
Mall traffic is up.
Retail focused on physical.
DTC opening stores.
We’re in a Once in a Lifetime Opportunity
Investing in malls presents a once-in-a-lifetime opportunity to capitalize on high-quality assets that were previously inaccessible to investors. With the current economic climate, these assets are now available at their lowest values.
Historic Low Valuations
According to recent market data, enclosed mall property valuations are at a historic low. In the third quarter of 2021, mall valuations were down by 47% compared to the same period in 2016. However, for investors, this presents a unique opportunity to acquire these assets at a discounted rate and capitalize on their potential for redevelopment and repositioning.
Rise of Interest Rates
Artificially depressed NOIs
Disinterested Borrowers
Untapped Land Value in Prime Locations
How can SREG make the opportunity a reality?
We’re the nations’ Premier Turn-key Investment and Operating Platform
Our broad team of experts offers unparalleled knowledge, services and resources that can help investors excel in the retail real estate market.
★ ★ ★ ★ ★
SREG’s Proprietary, Industry-Leading Platform Overview
Investment & Analysis Platform
SPINOSO INVESTMENT STRATEGY ™
SREG’s proprietary Investment & Growth platform that enables us to select winners and maximize their potential.
1. Opportunity Identification – Utilizing SREG’s proprietary pipeline, we identify unique opportunities for investing in malls before they hit the market.
2. Asset Due Diligence – Our team conducts a comprehensive analysis of the market, asset, competition, and financials to ensure sound investment decisions
3. Evaluation – With decades of experience and industry expertise, we have the ability to discern the winners from the losers in the enclosed mall market.
4. Acquisition/Negotiation – We use our deep industry knowledge to negotiate the best possible terms for acquiring properties, maximizing value for our investors.
5. Implementation – SREG leverages its best-in-class operating platform to implement the business plan and achieve optimal returns on investment.
6. Disposition/Refinance – When the time is right, we execute our exit strategy by either selling the asset for maximum value or refinancing it to achieve the best possible returns.
Opportunity Identification & Evaluation
We evaluate an asset by looking at 10,000+ datapoints consisting of a market, asset, competition and financial analysis. SREG’s comprehensive, 300+ page report enables us to evaluate an asset to determine winners and losers.
Opportunity Due Diligence
We evaluate countless segments and data points to help inform our Asset Grading & Evaluation.
Sample Investment & Analysis Data Points include:
Demo & Psychographics
In depth market & demographic analysis
Existing Tenant Analysis
Tenant by Tenant analysis and forecast of existing rent roll based of decades of deal experience and current deal flow of vast portfolio across the country
Operating Expense Efficiency Analysis
Existing Anchor Analysis
Lease Up Analysis
Investment & Return Analysis
Market Profile Analysis
Development Potential Analysis
Competition Analysis
Future CAPEX or renovation analysis
Cell phone capture data detailed analysis
Discernment to identify High Performing Assets and Underperforming Assets
Our proprietary detailed analysis and evaluation, combined with our historical and institutional knowledge of almost every mall in the country, gives us a distinct advantage in identifying the winners and losers in the enclosed mall industry. With this expertise, we can confidently invest in high-quality assets that have never been available before, at a time when they are undervalued, ensuring a once-in-a-lifetime opportunity for our investors.
★★★★★
“Thank you so much for your time yesterday. Please convey our sincerest appreciation to the team. It was reassuring to hear many of our conclusions are mutual. I really liked the stress test, the thought you all put into evaluating the tenants rolling, and the analysis of the land value. The color provided on property X was very helpful.”
Private Equity Firm
★★★★★
“I spent some time going through these materials and reviewing my notes from our call. Bottom line, I understand why you are so intrigued by it and the potential to take advantage of the illiquidity in the market.”
David F
Director of Finance
★★★★★
“We went through the deal and work you provided, first off great work/presentation!”
Mike B
Director of Asset Management
★★★★★
“Thanks for sending this over. The underwriting on X is well laid out and very helpful to see”
James W
Director of Finance
Informed to Make Smart Investments
And discern High Performing Assets and Underperforming Assets
SREG’s platform-generated report consists of a comprehensive, human-ai hybrid, 300+ page analysis of an asset
Equipped to Maximize Investments
And reach the Asset’s fullest potential
SREG offers a full suite of services to provide a comprehensive solution for enclosed shopping malls. From property management to leasing and development, our team of experts delivers customized strategies to enhance the value of each property and maximize returns for our partners and clients.
- NFull-service Property Management
- NAsset Management
- NDevelopment / Redevelopment
- NBest-in-class Leasing
- NProperty Marketing
- NConstruction Management
- NTenant Coordination
- NLease Administration
- NProperty Accounting
- NReceivership
Mall DNA & Experienced Team
At Spinoso Real Estate Group, we pride ourselves on being enclosed mall professionals with decades of experience, not just real estate professionals jumping into the mall space because of the current opportunity. Our team includes experts in all aspects of enclosed mall operations and management, including leasing, marketing, tenant relations, and financial management.
With our extensive experience in this highly complex asset class, we are uniquely qualified to handle the challenges and complexities of managing enclosed malls, ensuring optimal performance and profitability for our clients.
Proven Track Record
Spinoso Real Estate Group has a proven track record of successfully operating nearly 80 malls in its company history with many examples across its Senior Leaderships prior experience. Spinoso Real Estate has replaced almost every other mall operator on projects and has never been replaced.
Our latest case study of our work on Santa Fe Place in Santa Fe, NM is a great example of our operating platform’s capabilities, and how we increased NOI by 429%, Sales 129%, and Occupancy by 223%.
32
Years of Experience
79
Properties Since 2010
67.3
Million Sq. Ft.
Partner with spinoso
Investment & Solution Opportunities
Option #1
Investment
Our team of experts will analyze and underwrite these assets, acquire them, and operate them to achieve outsized risk adjusted returns not found in any other asset class. Let us help you maximize your returns with our expertise and resources.
Option #2
3rd Party Operations
At Spinoso Real Estate Group, we understand the complexities of operating and maximizing the value of enclosed malls and large-scale retail properties. If you own an enclosed mall or large-scale retail property, our third-party operating platform can add exceptional value through our proven expertise, customized strategies, and innovative technologies.
We offer a full suite of operating services that can help you unlock the full potential of your asset and drive long-term success.
Contact
Mall and Retail Headlines
Mall investment indicators
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Barnes and Noble plans for major brick-and-mortar expansion for the first time in years
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Frictions of e-commerce continue to emerge as retailers charge for online returns, what will be next?
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[RECORD YEAR!] We’re beyond excited and pleased to announce 2022 as best year ever for SREG. 2,500+ total deals completed and 7.7 Million square feet leased!
[RECORD YEAR!] We’re beyond excited and pleased to announce 2022 as the best year ever for SREG. We ended the year with 2,500+ total deals...
Brick-and-mortar continues to play a critical role in retail according to recent Placer.ai report, online presence will never replace the value of offline channels
Here’s a look inside the data behind brick-and-mortar’s core identity in retail, and why it’s impossible to replicate online. Over the past year,...