May 15, 2019
By Dennis Kaiser
The retail sector continues to rapidly evolve, and those in the sector must adapt to accommodate those changes. We asked Passco’s Vice President Todd Siegel to share what is behind the company’s strategic shift in our latest 3 CRE Q&A.
Q: Passco has traditionally been viewed as an owner of CRE assets. We understand the company is expanding its focus. What will that entail in 2019?
A: Passco has managed properties since its inception more than 20 years ago. Although, we have primarily managed our owned assets, we have also provided third-party management services.
Based on our experience and industry relationships, we have often been approached by other retail owners asking for management and operations advice. Given the interest from other property owners for our unique management services, we have expanded our platform to accommodate these owners.
This has led us to focus on offering property management with an asset management approach, and to include services such as ownership advisory, acquisitions and dispositions guidance, marketing, lender compliance, and leasing strategy.
Q: What are some of the reasons behind this strategic shift to encompass management of grocery-anchored and strip centers?
A: We have seen well-located centers that are not performing to their ability. We have also encountered owners that have struggled to unlock the full potential of their property.
Oftentimes, these centers do not require an extensive transformation, and can achieve significant value enhancement and benefit from experienced management. This is where we see a need for the services that Passco can offer.
Q: How does Passco’s expertise as an owner play into the management side of retail assets?
A: Passco brings a value-added management service to the table, because we draw not only on our own practical experience, but also our deep understanding of retail owner needs and wants, and how to bridge the two.
Our third-party service is also unique because we take an asset management perspective, of which property management is just one component. The most successful retail managers look at the overall asset, not just the facility management portion. They ask, how can we best manage the center in its entirety so that owners, tenants and customers are satisfied.
*Pictured Day Creek Village, Rancho Cucamonga, CA
For comments, questions or concerns, please contact Dennis Kaiser