According to the A lm framework, we first have to analyze the kind of assets that an exceptional retail rig will hold. And such rates usually hold shopping centers and strip malls that are target market centric. What do I mean by target market centric? For instance, if the mall is located near suburban places, the mall should have anchor tenants like Walmart McDonald's essential drugstores and clothing stalls similar to gap that's the area's budget needs and wants. If the model is located near areas of business, and the reader should have brought in a variety of restaurants such as Outback Steakhouse, Olive Garden and Starbucks, bringing business oriented clothing stalls like Mark and Spencer have entertainment outlets, stationery shops, money changers and so forth. You get the gist ask yourself this does the Retail read, you're looking at how malls that are positioned in such a way that meets the needs and expectations of the people in the area.

The easiest way to know this is to visit the malls yourself or obtain feedback online, which is pretty easy to do. Exceptional rates also tend to have integrated malls in their portfolio, integrated malls or real estate properties that are intelligently combined with other types of buildings such that both the buildings and their businesses complement each other and as a result, become magnet to join more people. Let's look at this example. This building called corino asaka. Owned Mike Benedict's retail record located in Osaka, Japan. corino asaka is a multi use shopping complex that combines both shopping centers on its lower floors and a hotel on its upper floors.

The hotel guests get to enjoy the convenience of having a shopping center at their doorstep whereas the Retail tenants get continued to put traffic from these hotel guests even during weekdays. As such, it is no surprise to find that the occupancy of its retail malls has remained close to 100%. So this is what an integrated model looks like. And especially in Japan, where convenience, ease of access and efficiency are held in high regard, I believe malls such as corino asaka, will continue to do well for their investors in the foreseeable future. Other than malls that are made target market centric, exceptional retail rates may have integrated malls in their property portfolio as well. So do look out for that.

All right, moving on to location pointers. An exceptional retail read will have its most located in areas where there is a sizable population of affluent people. This is an important point for which you need to perform due diligence. You want to ensure that the retail rate your We're looking at does not have malls that are located in questionable areas, and by questionable areas, I mean places with nauseatingly high crime and vandalism rates. You know, the areas that give a looming sense of unease whenever you walk down the street. malls in such places, even if they are brand new, usually do not do well.

Their tenants will find it hard to draw on customers and will eventually close. I always practice the habit of looking through the retail rich property portfolio thoroughly. If I see malls located in far flung places that are unfamiliar to me, I will acquire feedback and get a sense of the areas popularity and level of affluence. Ideally, the property should also be located in area with a large catchment of household or an area with the potential for new growth, such as a new town. So please do this. If you're looking at buying into a retail read the next location pointer about accessibility.

Exceptional retail rates will ensure that their malls are highly accessible, where patrons can come via train buses or taxis. The logic here is this. When you make it easy for people to travel to your malls without much consideration cost, your tenants will continue to enjoy high foot traffic and they will be more willing to pay a higher rental rates when their leases are up for renewal. Some exceptional rates will even build walkways and underground passages linking to other shopping malls and stations so as to improve connectivity and bring greater convenience to patrons. For instance, this retail read called Capitol mall trust, you can take a look at how they strategically divert traffic into its malls. Alright, now let's look at the management side of things.

What do the people in the management do to make a retail retail different from the rest. Whenever I read a read annual reports, they would usually use the word proactive, describe their management team. Of course, in any investment, we would want proactive people to manage our money. But what does it actually mean to be proactive or have a proactive management? To me, my definition of proactive simply means continuing to find ways and means to sustain and improve investment returns. applying this to retail rates, we know that foot traffic determines the success of any retail route.

Organizing events, holding competitions and establishing celebrity meeting greets are some of the many ways management can do to increase foot traffic, and exceptional retail retail will show signs of being proactive in spearheading marketing and publicity to make sure their malls remain relevant and fresh to the target markets. Suntech real estate investment trust is a brilliant illustration. Look at how the management manages Suntech city, you'll see countless events that have been organized and initiated by the management's a clear sign of an exceptional result. Another good management initiatives is the practice of API's. API stands for asset enhanced the initiative, which is basically to further enhance the shopping experience for their target markets by changing the physical appearance and the innards of the malls, increasing the number of outlet stores, converting unused spaces or subdividing some of the anchor tenant spaces into smaller units to extract higher per square foot rentals are some examples of API's.

The management of exceptional retail rates usually has a track record of doing all of these, those malls that the management don't do a eyes on They will sell off to other parties and use the proceeds to buy other promising malls. For that reason, do look for this pattern of excellence as well. Right? This is a criteria checklist of what we have gone through in order to cherry pick retail rates. Note that each type of return is unique and deserves its own a lm criteria. So for the subsequent lectures, you will see a criteria checklist done for you at the end of each lecture.

You can use or modify the checklist to run through the read that you have selected and see whether they have fulfilled the points in the criteria. The more your selected read has fulfilled the list of points in the checklist, the more likely it is an exceptional read. Excellent. In the next lecture, we will use the A lm framework on hospitality rates.