Reprinted from RetailDive.com

Dive Brief:

• By the fourth week of January, announced store closures across the retail industry — at 742 total — were down 65% compared to the same time last year, according to the latest counts by Coresight Research. CVS accounts for 300 of those closures.
• Store openings, meanwhile, stood at 1,910, a 3% increase from last year. Coresight’s tallies for the full year 2021 showed that openings (5,048) outpaced closures (4,975) in a year marked by strong consumer demand and few retail bankruptcies.
• So far this year, Dollar General has more planned store openings (1,102) than every other retailer combined, according to Coresight data.

To read the entire article click here

 

 

A simple and effective approach is our backflow preventer inspection

 

Benjamin Franklin famously advised fire-threatened Philadelphians in 1736 that “An ounce of prevention is worth a pound of cure.”

In 2021, we can certainly heed the same advice when it comes to preventing changes in water pressure that can cause unwanted sewage and other contaminants to enter our property.

Backflow happens when water, water, and other liquids, or gases, reverse inside the system and flows in the wrong direction. Contamination of your water system can lead to business disruption, as well as serious illness and even death.

 

CAP recommends an annual backflow inspection

 

One main cause of backflow is backsiphonage, which occurs with a change in water pressure. This is often the result of a water main break. Another common cause of backflow is backpressure. This happens when there is an increase in water pressure. If a system, such as an irrigation system becomes clogged or a pump malfunctions, an increase in water pressure can occur. Depending on your location, you may be required to have a backflow inspection performed annually.

Commercial Asset Preservation (CAP) offers a nationwide network of plumbing contractors that can quickly, efficiently, and economically provide a backflow preventer inspection. Our local experts will evaluate your plumbing system to see if backflow is occurring. If your system is using a backflow preventer, a device within your plumbing system that keeps water flowing in the proper direction, our technician will make sure it is in working order by assessing valves for leakage, gauge movement, and other critical warning signs.

CAP’s commercial general contractor network not only identifies issues of concern but also can perform emergency repairs without delay. Rest easier knowing that you have someone checking on your buildings and protecting your property.

 

Contact CAP at (801) 461-8242 or inquiries@commercialpreservation.com

There is a windfall of opportunities today that meet the criteria of a 1031 exchange. Whether you’re a commercial investor, an

attorney, or an accountant that represents clients with these types of properties, there are some critical issues to consider impacting the market.

A 1031 exchange allows investors to avoid capital gains taxes when they sell an investment property and reinvest the proceeds in a similar property or properties within a specific timeframe. Investors may use this approach when focused on smaller commercial properties like restaurants and retail.

Today, many of these types of properties are vacant either temporarily or permanently due to closures related to the COVID-19 pandemic. While 1031 exchange properties are a great way to reinvest profits without incurring capital gains taxes, that gain itself can diminish quickly if the property falls into disrepair during vacancy.

 

When opportunity meets risk

While investors have seen more availability of shuttered retail and restaurant properties, stark increases in unemployment are accompanying these closures. As of February 2021, over 10 million Americans remain unemployed¹, according to the Bureau of Labor Statistics.

Unemployment may explain why commercial property crime is on the rise. A 2020 Washington Post article shows dramatic increases in commercial property crime in major cities. Rates of burglary at commercial properties increased by 44% in Seattle, 41% in Denver, and 17.5% in New York.² The article suggests the properties are targeted because they are vacant with fewer personnel on-site.

With our current climate driving increases in criminal behavior, well-meaning property investors are exposed to risks like theft, vandalism, copper theft, and safety issues. These risks are counted along with common weather-related issues such as freeze damage, storm damage, mold, and water intrusion, which can reduce property value.

These negative impacts can make the perfect investment property become a headache, where repairs and remediation efforts are required to address damage, safety issues or municipal regulations. Otherwise, you or your client may face citations, fines, or lawsuits.

 

How to Stay Protected

There’s no one-size-fits-all solution for commercial real estate maintenance and security. Your risk can depend on geography, crime rates in your areas, the condition of your properties, use of security systems or guard services, and other factors.

Ultimately, one of the best ways to stay protected and maintain the condition of your property is to get professional assistance. Commercial Asset Preservation (CAP) specializes in the protection and preservation of vacant commercial buildings across the United States. Our locally based skilled contractors provide services to ensure that properties are maintained in a way that retains value.

A few of the steps we take to preserve properties:

• Assessment: An initial property condition report reveals the current status of the property and identifies areas in need of repair, preventative or ongoing maintenance, and a schedule for recurring inspections.
• Security: Rekey locks, install a lockbox, and review personnel who accesses the site. Protective boarding of windows and doors may be beneficial in certain instances as can engaging guard services. Commercial Asset Preservation can arrange interior building access for other parties who need it.
• Protection: Winterization, seasonal landscaping or snow plowing, preventative maintenance, and addressing any repairs needed. We also offer access to a vacant building insurance policy to further protect the investor’s interest in the property.

 

Trust the Professionals

Since our launch in 2009, CAP has become the go-to resource nationwide for inspection, maintenance, and repair services for dozens of well-known retailers, restaurateurs, landlords, REITs, financial institutions, receivers, and other parties responsible for commercial real estate.

At closed buildings, CAP can conduct recurring inspections to report on evidence of vandalism, security concerns, life safety issues, and possible municipal code violations. Even though our customers are distantly located from the vacant building, we help them feel as though they are on site at the property through detailed photo documentation and identification of issues of concern. Because CAP uses highly-skilled commercial contractors to perform inspections, emergency property repairs can be addressed without delay.

A few reasons why CAP is a smart choice:

• Unmatched experience: Our operations team has managed the maintenance and inspection of well over one million retail, restaurant, medical, office, and industrial property services. We leverage experience and our extensive contractor resources to provide our clients with solutions that help retain property value.

 

• Specialized focus: CAP is the only company in the United States predominately focused on vacant commercial properties. We believe our unique niche allows for a greater concentration on an aspect of the real estate world that until now many had considered to be an afterthought.

 

• Nationwide reach: We support all kinds of commercial property operators across the country through our nationwide team of local independent contractors. That means your business has access to a professional resource to protect and preserve your property, even in emergencies, without delay. Our contractors are familiar with the neighborhoods in which these properties reside and the requirements of local officials.

 

Protect the investment you’ve made. Reach out to discuss how Commercial Asset Preservation can protect your vacant properties now and in the future.

Contact CAP (801) 461-8242, inquiries@commercialpreservation.com

 

¹ Bureau of Labor Statistics. Employment Situation Summary. https://www.bls.gov/news.release/empsit.nr0.htm Last Updated: February 5, 2021. Accessed: February 25, 2021.

 

² The Washington Post. Amid pandemic, crime dropped in many U.S. cities, but not all. https://www.washingtonpost.com/crime-law/2020/05/19/amid-pandemic-crime-dropped-many-us-cities-not-all/. Last Updated: May 19, 2020. Accessed: February 25, 2021.

 

Reprinted from Chain Store Age 

Retailers learned an important lesson since March: Temporarily shuttered stores need constant attention.

Store inspections conducted during the pandemic revealed unexpected damages, many of which caused store preservation work orders to surge. As a result, retailers are rethinking best practices when it comes to inspecting and managing stores during extended closures.

Retailers didn’t miss a beat when it came to proactively cleaning and disinfecting stores before re-opening for customers. However, repairing unexpected damages caused by faulty plumbing, loss of electricity, and other factors gave some companies a run for their money.

“We did a decent job envisioning what maintenance would be needed before reopening but some issues were unexpected,” Tony DiSpirito, director of store preservation at Sephora, told Chain Store Age. 

“We had minor leaks that stained or partially collapsed a ceiling, or caused a floor to buckle, for example,” he said. “However, these [issues] resulted in a significant uptick in work order volume for our team, and simultaneously handling different projects across all of our stores was tough.”

Looking back, DiSpirito would have conducted proactive assessments to stay abreast of potential repairs.

“If I could do things differently, I would have sent out preventive maintenance teams regularly to address these issues while stores were temporarily closed,” he said. (Want to hear more lessons these retailers learned during the pandemic? Click here to register for Chain Store Age’s X/SPECS conference, Nov. 17-18.)

TECHNOLOGY

Savvy retailers agree that security camera and closed circuit television (CCTV) systems provide benefits well beyond loss prevention.   TD Bank for example, used its fleet of security cameras to remotely check on internal maintenance and security needs at physical locations throughout the pandemic.

“Technology is our friend,” according to Aaron Ancello, VP, regional facilities manager lead, TD Bank. “In addition to successfully enabling us to keep an eye on locations where [maintenance teams] don’t have a physical presence, we also use [the system] to monitor and adjust location temperatures and lighting needs.”

Cole Haan typically uses its CCTV system across all stores to monitor the cash wrap and high-ticket items. Looking ahead, Eric Korth, Cole Haan’s retail facilities manager, has bigger plans for the technology.

“If we used the cameras to focus on store-wide conditions — not just loss of product — during the pandemic, we could’ve better assessed potential damages, especially across stores that were vandalized,” he explained. “By expanding and recording store activity, we could share specific details with our vendors assessing and making repairs. Capturing more first-time fixes will also help cut our repair and maintenance expenses.”

Many companies now mandate inspections of physical locations during extended closures. However, typically only store personnel have a key, “which limits the ability have a store inspected by a third party,” TD Bank’s Ancello explained.

By adopting a national key program, retailers’ high-level operations and real estate associates are entrusted with a “master key” to specific locations. “In the event of extended closures, natural disasters or other business disturbances, these associates can provide this key to vendors or employees who can access the location, perform inspections and address circumstances,” he added.

Retailers can complement master key programs with an electronic access control (EAC) system that requires an additional credential — such as a card, fob, or fingerprint— to open a door. Besides restricting access to unidentified users, the system also records every door entry, creating an audit trail of all users.

Commercial Asset Preservation (CAP) offers in-person oversight and maintenance of closed/dark commercial properties nationwide.