NewMark Merrill had a record-breaking 2017. The firm completed $82 million in transactions, two development projects and $104 million in refinancing transactions in 2017, bringing its total assets under ownership to $2 billion. We sat down with Sandy Sigal, president and CEO of NewMark Merrill to find out more about the firm's activity last year, and what it is expecting to do in 2018.

GlobeSt.com: You had another record-breaking year in 2017. Tell me about some of your milestones this year.

Sandy Sigal: It was a tale of two realities with the first being strong leasing, two great acquisitions, a bunch of investment in our assets, great financings, and new developments. We finished the redevelopment of Crenshaw Imperial Plaza in Inglewood which proved again that well thought-out, properly tenanted, shopping centers that are local and unique do very well. We have been 100% leased in the property since before completion. Our new center in Longmont, Colorado, Village at the Peaks had an increasing visitor base, with tenants having their top 10% stores right off opening. And swing sets, playing fields, and marketing events create heartwarming experiences, which create great loyalty.

The other reality is that changes that need to happen to accommodate a different shopper, the impact of technology, and a shrinking tenant base. In the long-run there are many great opportunities, but the transition is a little painful.

GlobeSt.com: How did the growth this year stack up against your initial expectations?

Sigal: I was prepared for a slow-down in leasing, and was concerned how the end of the year would turn-out from a sales perspective. I was pleasantly surprised. We did lose some tenants but replaced them with stronger ones. This year we added Target stores, opened a Walmart, added a number of supermarkets, and saw a great holiday season.

GlobeSt.com: How have you been able to achieve this growth? What is your strategy?

Sigal: For the longest time we believed that the key is to win customers one heart at a time. We have spent every year since our formation focusing on being important assets to communities, providing meaningful events at our centers, and helping our tenants succeed by working with them on marketing and customer service. In a world where connection is rarer due to on-line shopping, e-mails, twitter and the like provide very personal experiences which have created really strong loyalty and good growth in sales.

We started a technology company, BrightStreet Ventures, in 2008 which focuses on getting our entire team better information about how each center is doing, and technology that helps us understand who our customers are, what they say about the experiences we offer them, and reaching out to them to allow them to shop how they want to shop.

GlobeSt.com: The evolution of retail is one of the major changes happening in commercial real estate. What does your growth say about that trend and the future of retail in general?

Sigal: Real Estate is the laggard in evolution. Technology has impacted other industries far sooner than real estate. It is hard to change, but the we need to evolve. The reaction of customers who we have provided meaningful experiences for, where the employees of the centers are from the community, and where people feel connected to the center has proved to be a very sustainable model even in the buy-online world. Retail will and should continue to evolve. As landlords we need to be more aware of what is happening at the shopping center level, and be nimble enough to be responsive to our shoppers.

GlobeSt.com: What is your growth outlook for 2018?

Sigal: I am pretty optimistic. I think the headlines on “retail's dying” have been offset by proof that only boring and bad retail is dying and there is good retail that is thriving. On-line retailers (like Amazon) have chosen to open actual stores and will be a consumer of space. Interest rates and inflation should rise, but I look forward to an exciting continuation of seeing how technology and bricks and mortar will not only co-exist, but may help each other thrive.

Instant Insights /

NewMark Merrill Has Record-Breaking 2017

Related Stories

Recommended For You