Observations & Conversations
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You would think the retailer would notice that their exclusive rep’s phone was disconnected for a few weeks. I’m sure there’s a story behind all this, but at least I know not to buy stock in that company! |
I got a call from a consultant working for a
catalog operator that was contemplating opening stores. She got my number from
National Retail Federation and the mission was to provide her client with a
short list of brokers to handle their roll out. I asked what kind of stores are
they opening and where? She didn’t understand that there are some brokers that
understand how to do a 2,000 sq.ft. mall store, but they won’t have a clue of
what to expect if the deal was for a 2,000 sq.ft. space in a strip center. Then
I asked what is the company’s culture? She wasn’t sure of my question, so I
rephrased it as “does the broker have to look good in a $3000 suit and talk like
they have a MBA, plus have experience in leasing?” The answer was yes and that
really narrowed it down. After I recommended four or five companies and gave a
brief background of the principals and supplied their phone numbers, I already
knew out of my list who would get the account if the cataloger has any brains,
but getting an exclusive is always a crap shoot. What I always find interesting
is when an incompetent broker gets an exclusive tenant rep assignment. You would
think that retailers would at least pick up the phone and do some reference
checks before they put the fate of future stores in someone’s hands, but they
don’t.
On a similar note, a few weeks ago we called a mall-based chain to find out
where they were looking for sites, etc. and we were told that we could only
speak to their exclusive broker and they gave us the phone number. Just so
happens I’ve known the exclusive broker for decades, so we use the number they
provided and it’s out of service. So we call back to verify the number and sure
enough it was correct. But it was indeed disconnected. So I called the guy’s
last known employer to get a forwarding number and they gave me the disconnected
number too. I called him a few weeks later to see if it was just a glitch with
the phone company, but the number was still disconnected. You would think the
retailer would notice that their exclusive rep’s phone was disconnected for a
few weeks. I’m sure there’s a story behind all this, but at least I know not to
buy stock in that company! It sounds like I’m down on exclusive reps, but I’m
not (I live with one). I’m more critical of the retailer that chooses an idiot
as their front man and then refuses to deal with anybody0 who calls them
directly. One company, a “consulting” firm, reps several interesting boutique
types of tenants and I absolutely dread calling them about the chains they rep
because they’re always so high and mighty with a snooty attitude and an air that
they have done me a favor just by answering the phone. We ran an article about
some of the chains the company reps and I got calls from readers that the rep
never returned calls and could I help get them through the front door. Needless
to say, I would never recommend this firm nor give them good press, but how they
got the accounts they have is a wonder to me. Doesn’t the president or vp of the
chain call the rep’s office and get the same treatment?
Another interesting scenario of a tenant rep... I was nagging Rich, our editor,
to do a story on a certain retailer. Just so happens the retailer enlisted a
huge brokerage firm as their tenant rep. We get the broker on the phone and to
his credit it was quickly, but he couldn’t send us a fax that day, because his
secretary was out sick. (Yikes, somebody teach that guy how to use a fax machine
quick!) Since our office calls about 300 retailers daily, we see a lot of warts
in the tenant repping arena. Luckily there are more competent folks in our
business than duds, but the numbskulls do increase everyone’s frustration level.
While still on the subject of tenant repping, Ted got a proposal from a landlord
and he took it to “his” tenant and of course presented a counter offer within a
day or so. The landlord responded to the counter offer via email, then within
five minutes, even before Ted presented it to the retailer, the landlord sent
another email saying they couldn’t do the numbers he outlined in the email sent
five minutes earlier since they needed more rent than they originally quoted,
even though none of the other terms had changed. The situation was already raw
to begin with because the landlord tried to go around Ted and deal direct with
the tenant, thanks goodness the retailer protected our interest and said “deal”
with my broker or don’t deal at all. That’s one good reason for a chain to hire
exclusive brokers - they don’t have to waste as much time negotiating with
incompetent landlords. Talk about weakening the bridge if not burning it down
all together, I highly doubt this landlord will ever do a deal with this tenant,
since who would volunteer to be tortured by stupidity especially if you can’t
make any money from it. (FYI - the landlord just called the retailer directly as
I’m writing this and the retailer called Ted to tell him to return the call -
geez the landlord may be an idiot but at least he has chutzpah! Ted returned the
call and I expect to hear screaming coming from his office any minute!) I doubt
this deal will get done in my lifetime, but unfortunately kissing a lot of toads
is part of brokerage.
The ICSC New England States Dealmaking was in Boston last month. It was a better
show this year than the year before. It was good to visit with old friends and
the cocktail party was extremely active. I didn’t run into any new and exciting
retailers or projects, but it was still worthwhile to exhibit and attend. Stop
by and see us at the ICSC Florida Dealmaking this month. In September, I’ll be
at the ICSC shows in Philly and Palm Springs. So be sure to drop by the booth
and say hello.
Until next month,