Terranova’s blog on real estate, retail related market trends, upcoming events, and more!

Building Better Communities

June 29, 2018 — TERRANOVA TRENDS — BY SALLY BOYNTON BROWN Real estate developers have long prided ourselves on meeting the demand of consumers in the marketplace. However, the ongoing acceleration of technology and capacity to deliver consumers a faster, more convenient product directly to their doorsteps is driving our industry to evolve. More store closings are announced every day and we know that investment capital is favoring industrial and data space over retail. Our traditional, reactive model of simply supplying what the market demands, would take us to a future where everything is supplied at the click of a button and no one leaves their homes.

Social science tells us humans are social creatives and therefore it would be unhealthy for us to never leave our homes, yet a number of studies in recent years have found that loneliness is becoming one of our biggest public health threats. The need to build community in an era when people are increasingly socially disconnected by a culture of immediate online need fulfillment is more critical now than ever before. Media headlines are filled with unbelievable tragedies and attendance at religious services, block parties, school carnivals and other community events is at an all time low.

“As developers, we have to make it worth it for people to get off their couches, leave their residences to go experience something in the physical world. We need to create authentic experiences for personal interaction,” said the Chairman of Terranova Stephen Bittel. “Millennials have more spending power than other generation and those millennials are willing to leave their homes for one thing, a unique experience they can tell their friends about on social media. They are our future and we must ensure they have rich, resilient opportunities to build the community connections that they will need to meet the challenges of their time.”

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Property Manager

Inside the Inner Workings of Commercial Real Estate – A Spotlight on Retail Property Managers

June 25, 2018 — TERRANOVA TRENDS — BY ANDREA SPEEDY After the deal is done and the lease is signed, the heavy lifting in the commercial real estate business truly begins. The Property Manager becomes the key point of contact for multiple stakeholders in a particular space, including the tenant, contractors, city and municipal inspectors, business improvement district (BID) directors, marketing teams, and the property owner or landlord itself. It is a fast-paced, non-stop, always-on career that is as challenging as it is rewarding.

“To say we’re jacks of all trades would be an understatement,” says Ozzie Dominguez, a 30-year veteran of property management, and a valued member of the team at Terranova. “Sure, we collect rents – as most people know. But we also coordinate hundreds of different tasks in a given day and oversee dozens of relationships. Those relationships are essential to how anything gets accomplished.”

Dominguez, who has served as a real estate Vice President, and held other leadership roles in the industry explains that his experience is not one-of-a-kind. Successful Property Managers who stay in the field as long as he has have all learned a number of essential truths to doing business. He then goes on to explain that what the general public believes a property manager does is only the tip of the iceberg. “We’ll often hear that we work for the landlord, and that’s technically correct. But we’re truly resources for our tenants. We’re absolutely working on our retailers’ behalf to help them stay in business and stay profitable. A successful tenant means a property that’s producing income.”

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Micro Suites

Thinking Small: Inside Real Estate’s Next Huge Movement

June 15, 2018 — TERRANOVA TRENDS — BY ANDREA SPEEDY Ask typical consumers in the Western hemisphere to describe a “micro unit” in terms of real estate, and after they take a few moments to think, they might tell you about the tiny apartments they’ve either seen or heard about in Japan… but they’d only be partially correct. Today’s micro units now exits throughout the globe, are growing in popularity in the United States, and extend well beyond the residential sector to include retail, hospitality, office spaces, dining & entertainment, and more.

Generally defined as spaces ranging between 300 and 600 square feet, micro units are becoming increasingly popular due to the value proposition they offer to consumer audiences, and the strong potential return on investment they deliver to property owners. Even better, the cost-benefit equation on micro units plays out almost exactly the same no matter where or what the space will be used for.

Consider two scenarios that typically have very different real estate priorities: residential tenants and retail tenants. Traditional perspectives would dictate that the residential tenant wants as much square footage as he or she can possibly afford for a certain monthly price. Retail tenants, on the other hand, value location over size – knowing that a better small store or restaurant that is always full is better than the large space that always seems empty. Recently, however, these two audiences have started to converge.

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