IMPACTspecialized RETAIL servicesUNITED STATES

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THE LANDSCAPE Contemporary retail is in flux—transforming as dramatically today as when price tags were first affixed to products for sale. In the flat world we live in, brands cross borders, supply-chains have shortened, styles change daily and the smartphone, which barely existed 10 years ago, is both a lens on retail and an engine for commerce, in-store and online.

Consumer access to retail data is unprecedented: Product cost, quality, peer reviews and more are widely available and easily accessed. The immediacy and transparency of information put additional competitive pressures on retailers and the owners they lease space from.

The primary consumer, the baby boomers, will soon be outspent by the newest cohort, the millennials, a generation that embraces the renter economy, places fitness and locally-sourced goods at a premium, understands brand awareness and allegiance, and is committed to giving back.

THE OUTLOOKRetail has kept pace with the overall U.S. recovery, and a cautious optimism is pervasive. Omnichannel is the watchword as consumers demand multiple options for purchase and pickup. Technology has impacted buyers, sellers and landlords so significantly that the role of the store needs to be reimagined.

A new pathway has been created where the physical store, redefined mall or lifestyle center is the “third place,” after home and work. Retail as entertainment is not new, but the pace of change and evolution of the concepts are. To execute successfully on this new model, however, both tenants and landlords need to embrace an immersive, customer-centric model. It’s all about the community.

The demise of brick and mortar has been greatly exaggerated. However, these stores are missing significant opportunities for branding, service, contact and retention. The shopping experience is not being replaced but enhanced by online and alternative channels, then brought back to the store level. Provide your customers with the best of all shopping experiences and the world will beat a path to your door.

It’s all about the experience.

THE SOLUTIONFor both owners and retailers, selecting and negotiating the right retail location requires market expertise, deep sector experience and a team that always puts your best interests first. Experience, expertise, ownership: our clients ask for it and we deliver—across the spectrum of retail assets and for notable global brands.

Colliers International is where you are as well as where you want to be. Our Market Intelligence Team is able to provide noteworthy forecasting by collecting and analyzing key data points from global metrics to discern opportunities.

Colliers gets that data is a major asset for our major retail clients. It’s the window to where they’ve been, where they are, where they’re going. Data is the key to decision making. Colliers is proud to be the only major real estate company with SiteMap for uploading, organizing and delivering Big Data.

Our Retail Specialists understand regional, national and global industry trends and their impact on real estate. Our primary goal is to help you keep retail real estate relevant.

Easy to work with. Hassle-free. Quite often this is how our clients describe us, and we take the compliment. We know how much is riding on the right decision: profitability, long-term relationships and careers.

RETAIL SPECIALTY GROUPS> International Retail> Retail Investments> Urban Retail> Landlord Agency> Tenant Representation> Restaurant> Real Estate Management Services> Net Lease> New Generation

SPECIALIZED SERVICES> Site Selection Technology> Capital Markets and Valuation> New Market Penetration & Realignment> Store Design and Delivery> Portfolio Management

Location and layout.

Flexible and future-proof.

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INVESTOR SERVICESFor our investor clients, the owners of the retail properties we manage, we deliver on functional requirements in an economical, safe and sustainable fashion.

Strategic Property Positioning

We provide comprehensive asset management services to clients utilizing a Single Point of Contact for ease of communication and reporting. We have extensive experience in the effective management of a broad array of property types for both private and institutional clients. We can provide customized, strategic multi-year planning. Our approach to value creation is thoughtful and analytical. We ensure that tenant mix analysis, leasing programs, property marketing and on-site management are fully integrated to maximize the value of your retail property.

Project LeasingOur unique partnership structure combines the strength and stability of a national and global platform. Our enterprising spirit encourages our professionals to think creatively and always exceed expectations. Our Leasing Team utilizes collaborative retailer relationships to uncover innovative leasing solutions. We also partner with local banks to identify financing opportunities for smaller retailers.

Management Services

From operational to financial management, we provide utmost quality to an asset. We perform comprehensive inspections, examining the operation and maintenance of all common areas to provide preventative maintenance planning and innovative strategies. From a financial perspective, we provide (to

our clients) annual budgets, cash-flow variances, forecasting, sales and health-ratio analysis as well as a multitude of detailed financial statements.

Colliers’ accounting department provides and fully supports the necessary reporting and internal controls to comply with Sarbanes-Oxley standards. Our lease administration and abstracting processes provide a thorough summary of lease details: We manage lease deadlines such as renewals and options, while tracking and reporting critical dates. We support record keeping with the maintenance of site plans, floor plans and photos, streamlining the collection of portfolio and project data. This is in addition to virtual video inspections for historical reference.

Disposition | AcquisitionYou tell us your goals. We make them a reality relying on our longstanding relationships with active buyers and sellers. Together, we come up with an integrated marketing strategy and well-defined process for disposition or acquisition of properties. At Colliers, we bring an in-depth knowledge of debt and equity markets, and have the global platform to handle cross-border and international portfolios.

Capital Markets and Valuation

Drawing on a wide range of capital sources, we address virtually any borrowing need, from acquisition financing to complex joint-venture structures. We design, negotiate and implement financial structures of all types and sizes. Colliers’ experienced debt and equity services team represents real estate owners, developers and investors throughout the process.

Valuation is a critical part of financing. That’s why we have our own dedicated team of elite MAI and Certified General Appraisers. We conduct our valuations with strict confidentiality, adhering without compromise to fiduciary principles.

Lease AdministrationOur lease abstracting process provides a thorough summary of lease details, allowing us to manage lease deadlines such as renewals and options, track and report critical dates, and reconcile rental charges with the lease terms. Our system supports record keeping with the maintenance of site plans, floor plans and photos, and it provides a streamlined outlet for the collection of portfolio and project data. We determine tenant occupancy costs according to operating budget, and we reconcile occupancy costs, estimate to actual, annually or as required.

Construction ManagementOur experience includes the

management of major renovations and redevelopment for a variety of property types. We coordinate and oversee tenant finishes, on the owner’s behalf, to ensure the integrity of the asset. Our goal is to provide a quality product within budget. Our professionals are familiar with prototypes of retailers that are expanding. From a landlord perspective, we analyze what will work in a center and what tenants will fit in the space accordingly.

Technology With our exclusive cloud based

operating platform known as The AMP, we interconnect people, processes and technology to empower smart business and transform real estate data into actionable insights. The AMP’s real time easy to use platform is the most advanced digital asset management software on the market. We provide clients with real time data and key tools for every level of the organization to conduct an effective analysis and help streamline decision making, thus increasing speed to market! Whether we are working with an investor, lender, owner, or operator, we provide our clients with cutting edge technology to help organizations increase revenue and decrease operating costs.

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In maximizing asset value, we take an ownership approach.

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DRIVE

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RETAILER SERVICESFor our retailer clients who are leading national and global retailers, we understand how physical stores extend the brand promise.

Site Selection Managing a multi-market rollout is much more than simply “referring” a client to qualified brokers in other markets. A well-managed rollout requires a clean strategy, process, systems, standardization and clarity of purpose. We complete a submarket analysis, determine technical site attributes (traffic, visibility, parking etc.) as well as site/store options, signage optimization/visibility, letter of intent negotiations, real estate committee packages, lease/purchase agreements, business advisory and facilitation, due diligence, financing and transaction management/pipeline reporting.

Transaction Management We manage our local market

transaction professionals to ensure we provide the best possible solution for our retail clients by minimizing occupancy costs and maximizing leverage in the marketplace. We select the right site (or sites) for your brand. For property dispositions, we develop and execute detailed marketing strategies based on our client’s specific goals for the property.

Project ManagementColliers has developed a broad and deep Project Management capability to serve our retail clients. We act as their outsource Project Management function, including on- and off-site professionals, who drive global standards and practices, manage national and global procurement programs, and direct our regional and local Project Management resources.

Lease AdministrationColliers Lease Administration

specialists are dedicated to helping clients with multiple sites manage their leases efficiently and save time and money. Our specialists combine technology, auditable and consistent processes, resources and industry experience to improve quality control. We proactively manage critical dates, providing transparency. We help clients avoid billing errors and overpayment, and also recover savings from landlords.

TechnologySiteMAP is a one-stop power

tool enabling real estate organizations to access and view all the information they need about markets, locations, sales and current leases. This exclusive tool gives our clients the ability to predict the “what ifs” about future leases and more. With SiteMAP, Colliers provides our clients with the analytics necessary to select the best options, which helps them choose the right markets, optimize their portfolios and reduce the costs of doing business.

Portfolio Consulting Our Portfolio Consulting and Work- place division offers industry-leading consultants and thought leaders across the U.S. who support our clients’ business planning and other strategic decisions including stainability and green issues. These services are not provided by brokers and not tied to real estate transactions, providing objective and conflict-free advice. Categories of expertise on this national team include:

• Corporate Real Estate Strategy

• Portfolio Optimization

• Incentives and Site Selection Services

• Valuation and Appraisal Services

Colliers delivers customized, accountable and innovative solutions that result in the best customer experience.

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Investor Services

HEITMANChallenge Heitman faced the task of repositioning one of its successful retail projects—the 460,000-square-foot Town Center Corte Modera in affluent Marin County, California—to effectively enhance customer experience and create new retail storefronts in order to out-position and keep the property top-of-mind for its customers.

Strategy Working with ownership, Colliers leasing and management teams identified three design architects to develop a reimaging program that would enhance the physical common areas, create new storefronts, activate “quiet” areas, improve pedestrian flow and increase foot traffic to ultimately generate higher sales. Additionally, Colliers helped launch innovative marketing and sponsorship programs in order to generate community awareness and incremental revenue.

Results Colliers assisted Heitman in implementing and executing leasing strategies that resulted in a stronger merchandising mix, rent growth and ultimately, center sales growth. Colliers also completed first-to-market leases with Veggie Grill, Blue Barn, Juice Shop, Athleta and Eddie Bauer, among others.

Investment NNN

UNIQLOChallenge The Owners of the then under construction flagship store hired Colliers to sell the fee simple interest in the property. Walnut Street is regarded as High Street in the Rittenhouse Square section of Philadelphia, not Chestnut Street.

Strategy The NNN team prepared offering materials offering materials to execute a traditional “boutique high street sale.” The scarcity of these products with such outstanding tenant credit created quite a buzz for this property. Through a sealed bid process, multiple offers were vetted. The winning bidder was an institutional buyer.

Results Numerous credible buyers and offers were received. The final sales price of $24,500,000 at a 4.08% cap rate represents the lowest cap rate ever achieved in Philadelphia. The transaction had the additional complexity of being an entity sale.

While working with Colliers, they have repeatedly demonstrated strong retail and financial knowledge in repositioning projects and creating value.

“”- GROSVENOR AMERICAS

EXPERIENCEInvestor

APPLEChallenge In 2013 Hyatt Hotel Group contacted Colliers San Francisco to request assistance in the leasing of its Union Square flagship property at 300 Post Street, occupied at that time by Levi’s. Concurrently, Apple was seeking to relocate from its flagship on Stockton Street, and expand into a larger space, and had made a proposal to Hyatt. Colliers’ established expertise in Union Square retail led Hyatt to request that Colliers review Apple’s proposed deal structure and market terms.

Strategy Through targeted property marketing, Colliers increased tenant and broker awareness of Hyatt’s unprecedented corner building opportunity, fronting Union Square plaza, and procured multiple offers for the building. These competing offers compelled Apple to review and revise its terms.

Results Colliers achieved a new market record rent for the Levi’s building, which Apple agreed to tear down and rebuild at its own expense as a 23,000-square-foot flagship—all without Hyatt Hotel Group having to incur either construction costs or lost income. The lease transaction was named by the San Francisco Business Times as its 2013 Deal of the Year. Apple completed construction and opened in Spring 2016.

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Site Selection

TIM HORTONSChallenge Tim Hortons sought to partner with a real estate advisor that would not only understand its brand, culture, business drivers and franchisee model, but also be able  to deliver locations in multiple markets—in line with its leasing expansion strategy. The company also faced concerns relating to project management of new store development, an antiquated lease administration system that led to missed deadlines, and diagnosis of possible unforeseen issues with strategy roll out.

Strategy After several discovery conversations with Tim Hortons’ corporate Real Estate Manager and U.S. Director of Development and exploring all aspects of its business, the Colliers team realized their real estate needs were not being fulfilled. The team implemented a systematic approach and maintained frequent communication throughout the entire process.

Results Just 12 hours following the presentation of services, Tim Hortons expressed interest in working with Colliers. The Colliers team ultimately executed a national preferred partner agreement, and applied a tailored approach to Tim Hortons’ needs. Within the first 3 months, Colliers and Tim Hortons secured 15 sites under LOIs.

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Colliers took the time to understand our brand first before launching into sites across the U.S. They are a consistent resource for data intelligence in addition to market insights – identifying sites under this approach has allowed us to move swiftly from site selection to Lease and opening.

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EXPERIENCE

- TIM HORTONS

Disposition

KOHL’SChallenge For the first time in its history Kohl’s was faced with the challenge of closing multiple stores across the country. Despite a recession-depleted real estate team, Kohl’s was a long established success story with deep brokerage relationships. Colliers would need to overcome these relationships by utilizing a broad comprehensive national platform, local market expertise and support resources second to none.

Strategy Through multiple meetings and listening sessions, Colliers identified the challenges that Kohl’s faced and tailored a disposition strategy. After starting with an in-depth review of the respective lease abstracts, Colliers was able to understand the DNA of each asset, their positions within the markets and the various challenges that each faced.

Results Colliers was awarded the disposition assignment, thus beating out a competing firm. After quickly and comprehensively analyzing each asset and respective market, Colliers’ developed a two-pronged strategy with a strong ground game. Colliers brought in their local market real estate experts and targeted all likely prospects. In addition, they implemented a top down direct marketing approach by promoting the assets as a portfolio to corporate real estate directors nationally.

Tenant Representation/Advisory

TJMAXXChallenge As the leader in off-price apparel and home fashion, with over 3,600 stores worldwide, TJX wanted to expand in Florida and needed an advisor with a solid understanding of the retail market and region to roll-out their Home Goods brand. The retail market in Florida is dense and space is limited. Locating 25,000-square-foot locations that reach a high-end demographic was a challenge. Additionally, Florida’s high-end shoppers are not geographically centric.

Strategy Colliers devised a strategy using analytics to identify retail hot spots. By using income, education and spending power, along with density within the geographic constraints of the region, Colliers narrowed down the best sites available. In addition, Colliers implemented a top down direct marketing approach by promoting the assets as a portfolio to corporate real estate directors nationally.

Results Colliers completed a full roll out of Home Goods in Central Florida and has opened 70 TJX brand stores, some of which are the top producing stores in Florida. Colliers also achieved deal structures that ensure profitability of the stores. Currently, TJX is rolling out two more brands to the region.

Colliers has been diligent in identifying opportunities for disposal of our excess real estate and have generated creative,

out-of-the-box ideas to reach positive solutions for Kohl’s.”

“”- KOHL’S

Anjee Solanki National Director,Retail Services | USA+1 415 288 7871anjee.solanki@colliers.com

COLLIERS INTERNATIONAL AT A GLANCE

7-ElevenAce HardwareAEW Capital ManagementAppleAshley FurnitureAT&TAudiAvalon BayBJ’s BrewhouseBlo Blow Dry BarBlackRockBrixmorBrookfield PropertiesChase BankCinemarkCitibankClarion PartnersDDRDeBartolo DevelopmentDominosEarl of SandwichFederal Realty Investment TrustFidelity InvestmentsFive GuysFresh CityGrosvenor AmericasHaworthHeitmanHershey’sHinesHootersHome DepotIlly CoffeeInvescoInvenTrustiPic TheatersIvanhoe CambridgeKennedy & Associates

Kohl’sKohlerLegal Sea FoodsLifetime FitnessLoleLouis VuittonLowe’sLuxoticaMetLifeMorton’sMountain Equipment Co-opNew BalanceNobuOrangetheory FitnessPalm RestaurantsPhillips EdisonPieologyPonte GadeaPorschePret a MangerPure HockeyRegency CentersRite AidSaltboxShanghai TangSola SalonSpartan NashSpear Street CapitalSprintStaplesTargetTerramarThe Capital GrilleU.S. BankVerizon WirelessWalgreensWorld of BeerYMCA

colliers.com/us/retail

Revenue

$2.6B(US$)

Managing

2BComprised of

15,000

Lease/sale transactions

72,000Transaction value

$105B(US$)

Established in

68countries

All statistics are for 2016, are in U.S. dollars and include a�liates.

professionals (square feet)