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CRP 6592/3850 Retail Development

Every other year in the fall, students in the Program in Real Estate and other programs across campus take part in the Retail Development in Real Estate course, an eight-week seminar series hosted by Program in Real Estate Director, Dr. David Funk. The course provides a practitioner-driven perspective on the development, acquisition and management of retail estate including mixed-use properties. Designed as an advanced, product-type specific in-depth study, the course takes students through the lifecycle of retail development.

The fall 2011 course topics included retail market analysis and feasibility, site selection, entitlement issues, leasing, acquisition strategies, tenant management, deal structuring and disposition. The course faculty members are active real estate professionals from around the country and provided the students with practical applications through lectures, case analyses, negotiations and discussions.

The first and last lecture of this course was delivered by Richard Baker, Governor, Hudson’s Bay Company. He generously shared his insights on the retail sector, development of scores of retail projects in the Northeast as well as his acquisition of the retailers Hudson’s Bay Company and Lord & Taylor. All in attendance appreciated these insights on negotiations with tenants and career advice for identifying lucrative, yet low-risk opportunities.

Duane Stiller, President, Woolbright Development, Inc. taught students the importance of thorough retail market analysis. With the students, he shared several techniques to bolster one’s knowledge of a market and synthesize that information to best identify gaps in the market and fill them with the optimal tenant mix. By better understanding the dynamic tenant mix in a market, students are better equipped to understand and predict how and where the market is evolving.

The third week brought Richard Dube, President, Tri-Land Properties Inc. to campus. Mr. Dube lectured on effective techniques and strategies for evaluating a potential retail site. He shared many examples and lessons learned from his more than 30 year tenure in the real estate industry. Mr. Dube presented students with a case study comparing two retail redevelopments. Students valued his approach and subsequent takeaways for evaluating opportunities, learning the value of TIF (tax-increment financing) as a key component to completing several of his redevelopment projects.

The fourth speaker in this fall’s lineup was Bruce Zalasnick, Managing Partner, Outlet Partners, LLC. Mr. Zalasnick’s unique experience within the outlet segment of the retail market provided students with an unparalleled perspective in this area. The successful international expansion of Outlet Partners to Japan and other global markets offered a new lens for students interested in international real estate to view the opportunities and challenges associated with operating outside of one’s comfort zone. Joint venture structures, selection of a capable international partner and financial feasibility were a few of the key themes from his sessions.

Students were able to rapidly gain perspective on the retail industry over the eight weeks of the course. The speakers highlighted each phase of a successful real estate development, from locating a site to identifying and approaching the appropriate tenants for their project. By extracting key lessons learned, students will be able to apply these lessons to their one career and entrepreneurial pursuits.