RiverRock Names Jim Lynch To Lead Retail Team

(RealShare Orange County convenes at the Hyatt Regency, Irvine, August 16.)

NEWPORT BEACH, CA-GlobeSt.com has learned exclusively that RiverRock Real Estate Group has hired Jim Lynch as retail practice leader/account manager to oversee the firm’s retail team as well as the 3-million-square-foot Red Mountain Retail Group portfolio and its 13-member management team. Prior to joining RiverRock, Lynch served as general manager for Century National Properties, where he was responsible for managing the Shops at Rossmoor, a 400,000-square-foot, 1960s-era neighborhood center in Seal Beach, CA, that was redeveloped into a premium lifestyle center.

“Mostly what attracted me to RiverRock was the opportunity to get involved with a team of people that are so accomplished and of such high quality,” Lynch tells GlobeSt.com. “That was really appealing to me. It’s fun to work with people that are so knowledgeable.”

Lynch also comments to GlobeSt.com on the challenging and changing retail leasing and management climate. “Tenants are continuing to require owners to share in the risk of deal-making, with co-tenancy agreements, caps on CAM improvement dollars—these things spread out the risk among the tenants and the landlord, whereas previously the tenant was taking most of the risk. Cost containment continues to be a hot button for tenants, as tenants are asking for more exclusions from expenses and asking landlords to pay.”

Owners also need to be careful when negotiating and drafting leases that they understand what they’re compromising on, he adds. “A lot of these are long-term deals, so whatever you agree to is going to be in place for a long time, and you have to make sure it will contribute to the success of the property.”

Lynch emphasizes the importance of retail landlords understanding the trade area they’re serving in order to help their leasing efforts. “You need to attract tenants who will be the most accepted in your market. And you have to take this factor into consideration dung negotiations.”

As for the retail market overall, Lynch tells GlobeSt.com that he sees the sector gradually improving after hitting a low spot a few years ago, “but now leasing activity is picking up. Tenant sales are a little inconsistent, but generally starting to improve. It’s going to take some time, but we’re starting to move to the right track.”

Looking ahead, Lynch sees continued improvement in tenant sales and leasing activity, with online shopping’s effect on traditional retailing still a big question mark. “I don’t think the Internet will put traditional retailers out of business, but the playing field is changing, and retailers are using their stories to sell what people will buy on the Internet. People still really like to shop and touch things and feel them, but once they know what it is they want, people are much more apt to buy online and have it sent to their house.”

However, neighborhood shopping centers are stable, Lynch says, because “you still have to buy your groceries and other life essentials at the neighborhood center. I’m not sure how successful online shopping has been for the grocery retailers, but just from watching in my own neighborhood, I don’t see those grocery-store delivery trucks very often. Shopping for groceries has remained relatively unchanged.”

One area where the neighborhood center has changed is banking, Lynch concludes. As more people pay bills online and use direct deposit and remote check depositing applications, they’re going to branches less and less, so banking has changed significantly.

As GlobeSt.com previously reported, in June RiverRock was hired to oversee property management for the Fine Arts Building in Los Angeles, which New York City-based Sorgente Group of America purchased for $28.5 million. The 12-story 120,000-square-foot building was built in 1926 and is also known as the Global Marine House.