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.
Commercial Asset Preservation (CAP) offers in-person oversight and maintenance of closed/dark commercial properties nationwide
/in UncategorizedCommercial Asset Preservation (CAP) specializes in closed/dark property oversight, repair, and maintenance. Only CAP has the national network, experience, and detailed closed property reports to conduct recurring visual property inspections.
Reference this recent article:Chain Store Age: Sephora, Cole Hann, TD Bank on best practices for maintaining dark stores
Our experts look for evidence of vandalism, security concerns, and life safety issues. Commercial Asset Preservation is an experienced provider offering its services throughout the United States at thousands of commercial properties for banks, retailers, REIT’s, and receivers.
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 them when they are most vulnerable.
As your portfolio of distressed and vacant properties grows, CAP’s services can reduce your overhead and personnel costs, contact CAP (216) 765-1220 or inquiries@commercialpreservation.com
Chain Store Age: Sephora, Cole Hann, TD Bank on best practices for maintaining dark stores
/in UncategorizedReprinted 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.
** Client Bulletin ** Attention: Removal of rubber spline from glass doors and windows by vandals
/in Uncategorized** Client Bulletin **
What can you do right now?
Commercial Asset Preservation can help secure your buildings and provide perimeter checks. Call (800) 445-0640 or contact inquiries@commercialpreservation.com today to reduce your risk.
CAP hires Samuel Cerminaro, Jr. as National Sales Executive
/in UncategorizedCORONAVIRUS: SAFETY MEASURES FOR BUSINESSES FORCED TO TEMPORARILY CLOSE THEIR PREMISES
/in UncategorizedOriginally published by Allianz Risk Consulting
INTRODUCTION
As more businesses are faced with shutting down their operations temporarily due to the recent coronavirus outbreak, we have developed the following collection of possible loss prevention measures which can serve as a guide to help you individually plan for a temporary shutdown.
All of the recommendations are technical advisory in nature from a risk management perspective and may not apply to your specific operations. Please review recommendations carefully and determine how they can best apply to your specific needs prior to implementation. Any queries relating to insurance cover should be made with your local contact in underwriting and/or broker.
We remain available for your loss prevention needs. Please contact your local ARC representative if you have any questions or want to discuss any specific issues.
LOSS PREVENTION MEASURES
The measures listed below can help to prevent or mitigate the impact of damages occurring during a shutdown. However, this is not a comprehensive list and must be checked by the business against its actual requirements and circumstances and planned individually:
COMBUSTIBLES
COMBUSTIBLE AND FLAMMABLE LIQUIDS
SERVICES
BUILDING SECURITY
PREMISES INSPECTIONS
MAINTENANCE
FIRE
To continue reading and download the fire inspection checklist, visit https://www.agcs.allianz.com/content/dam/onemarketing/agcs/agcs/pdfs-risk-advisory/ARC-Coronavirus-Shutdown-Of-Facilities-Loss-Prevention-Measures.pdf
Business owners concerned about ‘perfect storm’ for break-ins during COVID-19 crisis
/in UncategorizedThe article below is reprinted from CTV News regarding Toronto, Canada based non-essential business properties. While this is a Canadian article, we foresee break-ins being an issue in United States-based non-essential businesses as well. Commercial Asset Preservation is available and able to repair and secure properties that have sustained damage. We also can provide oversight for dark or closed properties. Contact us to discuss your property needs.
Business owners concerned about ‘perfect storm’ for break-ins during COVID-19 crisis
TORONTO — Non-essential businesses closed due to the COVID-19 pandemic are being targeted in a series of break-and-enters in Toronto.
The Federal, a restaurant near Dundas St. W. And Dufferin St., had its front door smashed in early Monday morning. The owner says the thief broke in and stole a laptop and cash, and estimates the incident will set him back about $6,000 during an already uncertain time.
“There’s no guarantee that we’re going to be able to make it through this,” Zach Slootsky, the owner of The Federal, told CTV News Toronto. He fears the restaurant, which was opened eight years ago, will not be able to survive much longer.
“We have a three-month plan, for now, we had a three-month plan before the break-in and that sets us back maybe another month,” he said.
“While we’re waiting here in limbo, we’re exposed and we just have this criminal liability that criminals are exploiting now.”
Fashion house Horse Atelier, near Queen St. W. And Bathurst Ave. was targeted last week. Co-founder Heidi Sopinka said the burglar deactivated their alarm system and stole about $3,000 worth of clothing. They also ransacked the store, destroying clothing and damaging the property.
“As you can see it’s a perfect storm,” Sopinka said. “All the stores are closed and empty and everyone’s at home. And the prison system is at capacity, and the judicial system is shut down.”
She worries as businesses sit vacant during the mandated closure of non-essential services they are an easy target for criminals. Horses Atelier has now added security cameras to act as a deterrent for future break-ins.
Other businesses have been boarded up as a preventative measure, and some restaurants have posted signs indicating there is no cash or alcohol kept on the premises.
Toronto police say they have seen the number of commercial and residential break and enters “fluctuate” over the past few weeks, but don’t have hard data to share.
“We expect if we drill down into those numbers we would see an increase in commercial break and enters and a decrease in residential break and enters,” Toronto police spokesperson Meaghan Gray said. “We are watching that closely.”
Gray said police have introduced targeted patrols in areas that may be more susceptible to crime.
“That’s being led at the division using intelligence led data to determine any possible hotspots to make sure that as police officers do their regular patrols day to day, that they’re visiting those areas,” Gray said.
Independent business owners, who have been seeing little to no income for weeks, say break-ins are a devastating blow during desperate times.
“If we’re exploiting each other’s weaknesses right now when we’re all weak, we’re not going to make it through this,” Slootsky said.
Business owners can refer to the Crime Prevention Through Environmental Design (CPTED) for advice on how to protect their business property, and be a less appealing target.
Commercial Asset Preservation COVID-19 Response
/in UncategorizedCommercial Asset Preservation (CAP) offers in-person oversight of your temporarily closed properties nationwide
Commercial Asset Preservation specializes in closed/dark property oversight and maintenance. Only CAP has the national network, experience, and detailed closed property reports to conduct recurring visual exterior inspections. Our experts look for evidence of vandalism, security concerns, and life safety issues.
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 them when they are most vulnerable.
Contact CAP (216) 765-1220, inquiries@commercialpreservation.com
Commercial Asset Preservation Seeking National Sales Executive
/in UncategorizedCommercial Asset Preservation is seeking a National Sales Executive. The National Sales Executive is responsible for creating new business opportunities for Commercial Asset Preservation (CAP). We are seeking a motivated professional to help us continue to grow our presence in the commercial real estate maintenance industry throughout North America.
Responsibilities
Skills and Qualifications
CAP Offers
Many outstanding benefits including a competitive base salary with commission, PTO, paid holidays, and company contribution toward health/dental insurance.
Submit resumes to insulm@commercialpreservation.com
Reis: National Retail Vacancy Experiences First Drop Since 2016
/in UncategorizedReprinted from Shopping Center Business
One trend in the retail sector is the conversion of empty big box stores into self-storage facilities. For example, Aston Properties transformed a former Kmart store in Monroe, North Carolina into a 70,000-square-foot self-storage facility.
New York City — The national retail vacancy rate fell 10 basis points to 10.1 percent in the second quarter, according to New York City-based commercial real estate data firm Reis. This is the first time in which vacancy has declined since the first quarter of 2016.
For context, in the second quarter of 2018, the rate had risen 20 basis points to 10.2 percent and remained flat at that rate through the first quarter of this year. The tightening of available space is in contrast to the larger talking points about U.S. retail, which often claim a “retail apocalypse” is upon us as e-commerce continues to cause a sea change in how Americans shop.
Reis information comes from its database of commercial real estate property information, spanning 77 primary metro areas.
Both the national average asking rent and effective rent, which nets out landlord concessions, increased 0.4 percent in the second quarter. At $21.39 per square foot (asking) and $18.73 per square foot (effective), the average rents have both increased 1.7 percent since the second quarter of 2018.
Mall outlook
The regional mall vacancy rate rose 30 basis points in the first quarter to 9.3 percent, the highest rate for mall vacancy since the third quarter of 2011, according to Reis. This came in the midst of a number of chains announcing store closures, including JC Penney, Payless ShoeSource, Charlotte Russe and Gymboree. The rate remained flat into the second quarter.
The performance of both malls and neighborhood centers will likely be affected by the continuing store closures throughout the second half of the year. Yet the stability of the trends this quarter shows how the retail sector has been able to withstand structural changes in the industry to some extent, argues Reis.
“As big-name anchor stores clear out, a number of stores continue to open,” says Victor Calanog, chief economist for Reis. “Grocery stores have been a leading new occupant of those vacant spaces over the past year or so, as have home/houseware stores, gyms/fitness, discount variety stores, discount clothing stores and even trampoline parks.”
Absorption stays strong
Store openings have led to strong occupancy growth this quarter, as net absorption outpaced new construction for neighborhood shopping centers. Net absorption for the second quarter was 2.4 million square feet, nearly double the previous quarter’s absorption of 1.29 million square feet. New completions measured just 1.49 million square feet.
When broken down by metro, the statistics show that few cities — 21 of 77 — experienced an increase in vacancy for the quarter. The figure was down from 28 metros in the first quarter. Metros with the highest vacancy rate increase include Columbia, S.C.; Charleston, S.C.; Birmingham, Ala.; San Antonio; and St. Louis. Metros with the biggest decline in vacancy include Chattanooga, Tenn.; Tacoma, Wash.; Colorado Springs, Colo.; Greensboro, N.C.; and Columbus, Ohio.
In sum, Reis argues that the retail sector has been able to ward off the worst of the “retail apocalypse” premonitions so far. On the supply side, empty big box stores have been converted into self-storage or sold to developers for redevelopment, former shopping centers have been demolished and there has been a general slowdown in building within the sector.
With minimal construction in the pipeline, vacancy rates were able to stabilize a bit this quarter, though the retail sector will likely see fluctuation ahead.
“A number of stores are still expected to close in the second half of the year and online shopping continues to offer stiff competition to brick and mortar stores,” says Calanog. “Older stores that are not keeping up with new business strategies or modernizing will likely continue to suffer and close in this tumultuous time. Still, the retail sector has been able to adapt to industry restructuring in a number of ways.”
To view the entire story, visit https://shoppingcenterbusiness.com/reis-national-retail-vacancy-experiences-first-drop-since-2016/
Why You Should Consider Adaptive Reuse for Your Commercial Property
/in UncategorizedAdaptive reuse is the process of reusing an old property site or building for a purpose other than the use it was originally built or designed to accommodate. At Commercial Asset Preservation (CAP), we are experienced in preserving commercial properties so that adaptive reuse can occur at properties anywhere in the U.S. and Canada. Learn our top tips for determining if your property is a good candidate for an adaptive reuse project.
Reasons to Consider Adaptive Reuse
While creating a new revenue stream from a vacant building is often the primary reason behind adaptive reuse, landlords can realize so much more. The property owner stands to gain community goodwill, improved market perception, tax credits, and re-utilization of existing property and materials when repurposing a vacant commercial building. Adaptive reuse does not need to be permanent, another consideration can be to provide temporary re-utilization of your building. One example of temporary use is a seasonal pop-up store, which can generate revenue at an otherwise vacant structure. A second temporary use is applicable to larger spaces where the building can function as a staging or care area during the time of a natural disaster.
Tax Credits with Adaptive Reuse
When adaptive reuse projects involve historic buildings, developers can often look to tap into a federal tax incentive program known as the historic rehabilitation tax credit. This program generates a credit that directly reduces taxes rather than offering a tax deduction such as depreciation, which reduces taxable income. The credit is intended for income-producing properties and is flexible: for example, if a property originally was used as a hotel, it can find new life as an office building or multifamily project. More information on the historic tax credit can be found in this article.
How to Determine if Adaptive Reuse is Best for Your Property
Adaptive reuse is a consideration when the concept or retailer in your property is no longer viable or able to draw a crowd. If the building is a former big box store consider subdividing the building to bring in several new tenants. Adaptive reuse involves seeking tenants outside of the traditional retail marketplace such as: schools, hospitals, medical centers, community centers, municipal buildings, call centers, entertainment venues and more. Work with local leaders, brokers, and consultants to get a flavor of what might be missing in the area that you can fulfill through adaptive reuse. Nearly any type of reuse option beats a vacant building if build out costs can be controlled.
Where Should Adaptive Reuse be Employed
Site location is a primary factor to consider when determining if your property is a good candidate for adaptive reuse. Those buildings which are located in a city center and were once a high traffic location are the most likely candidates for adaptive reuse as these structures catch the attention of municipal officials who desire to have vibrant buildings in the core of their community. Typically, these buildings have deteriorated a bit, but they may have unique physical characteristics and perhaps historic architecture which make the building worth remodeling. A great example of this is Ghiradelli Square in San Francisco. In 1964, the old chocolate factory became the first successful adaptive reuse project, as the property was converted into a specialty retail and dining complex.
It is essential to choose a team that you can trust to protect your property and leave it in a condition where adaptive reuse is a good investment.
Learn more about CAP’s vacant property services, which will help aid you in getting your property ready for adaptive reuse.
Potential Issues in Adaptive Reuse Projects
Cost and building codes are two of the biggest challenges when converting an old building to a new use. It is essential for your buildings to be accessible and safe, which can be a big hurdle to overcome when working with older buildings. Often times, the building’s electrical, plumbing, and HVAC systems need to be gutted and replaced entirely in order to meet current safety and environmental standards. Complying with ADA standards may necessitate additional expense. Other important considerations are the credit quality of the new tenant and the potential liability of the business that tenant will be operating in the repurposed space.
Why You Should Choose CAP for Your Adaptive Reuse Project
CAP is experienced in giving vacant properties new life and has worked on preserving properties for adaptive reuse projects across the country. Throughout our years in business, we have seen the good, the bad and the ugly. CAP feels confident in saying that it has experienced nearly every conceivable scenario of what can happen to a building. We use our experience and extensive contractor resources to provide clients with a cost-effective solution that places their property in a condition that meets the needs of the client and the municipality while retaining property value and making the building ready for its next life. Considering adaptive reuse for your property? Contact CAP at (801) 461-8250 or inquiries@commercialpreservation.com.