As part of our coverage leading up to ICSC Western Conference & Deal Making event,
Bob Peterson, Vice President, Investments for Passco Companies, gives us his insider perspective for this edition of Counter Culture. 

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Successful retail investment requires a disciplined investment strategy and a fully integrated team approach.

The distressed, value-add retail properties that were so prevalent just a couple of years ago are now few and far between, leaving many investors wondering if success is possible in such a competitive marketplace.

It is.

In reality, fantastic retail opportunities do still exist—it just takes a few tweaks of the “investors toolkit” to ensure success. Below are Passco's top 5 tips for retail investment success in today's market:

Tip #1 - Build a Team with a Diverse Collective Background

This might seem obvious, but in fact it's an essential part of any good investor's toolkit.  Investment teams that focus on hiring people with diverse backgrounds in both commercial real estate and other industries will find themselves equipped with the knowledge they need to properly evaluate and secure retail assets in the current market.

Beyond that, a diverse team allows an investment firm to look at properties differently, and to identify opportunities that other, more one-dimensional, companies might miss.

A talent pool with a diverse collective background will be better able to strategically and creatively reposition properties, and will be able to work together to determine where the unique opportunities for profitability may lie.

Tip #2 - Leverage relationships to help make smart decisions

A strong retail investment firm will utilize its team's wide array of business and industry experience and relationships to support smart decisions. This is important during the acquisition, due diligence and asset management phase of a deal. Relationships with investment brokers and sellers can increase your probability of acquiring a property “off market” and avoid an auction environment. Relationships with existing tenants, as well as leasing brokers can help to both educate and safeguard an investor from unknown factors when acquiring a property.

For example, the Passco team is fortunate to have industry colleagues who have notified us when a property's major anchor tenant was moving, or when an existing tenant was planning a cut back or bankruptcy. Armed with this knowledge in the due diligence stage, we are better positioned to re-strategize and ensure that our acquisition decisions are on track.

Tip #3 - Take your services in-house

There's nothing like being well-equipped at every stage of the game. Today's retail market is changing rapidly, and investment companies with in-house services are poised and ready to adjust to those changes. At Passco, for example, we are fully integrated with not only in-house development, acquisitions, due diligence and finance teams, but we also have in-house counsel, property management, and leasing. Having these services as part of our existing team ensures that these professionals already understand our strategy and outlook, and they are ready to support us in taking the next step.

Want to find out the rest of Passco's Top 5 Tips for Retail Investors?  Stay tuned for part 2 of this blog!