Beyond Office And Industrial
CORFAC International establishes a retail presence.
Jaime Lackey

What does retail have to do with office and industrial? In today’s development market, all property types are so intermingled that many brokerage firms see a benefit in handling all property types. And some retail brokers are leveraging the reach of an established office and industrial brokerage coalition for the benefit of retail clients.

CORFAC International, an alliance of commercial real estate firms that has traditionally focused on office and industrial properties, is now emphasizing retail among its specialties.

Tom Bennett.

“Individual CORFAC firms have been involved with retail for years,” says Tom Bennett, executive director of CORFAC International. “We have 67 offices in North America and most participated in retail brokerage activity — leasing or sales — last year. We have a strong retail presence and a strong capability, and we want to shine the spotlight on our collective retail services.”

CORFAC, a not-for-profit association founded in 1989, has more than 2,500 commercial real estate professionals in 78 markets in the Americas and more than 150 markets globally, through affiliations with King Sturge in Europe and Asia.

Retail brokers in CORFAC firms have been working to develop retail services throughout CORFAC for the last few years.

Joe Latina.

“In the last 5 to 10 years, retail has become the darling of the industry,” says Joe Latina, a broker with Patterson-Woods &Associates/CORFAC International in Wilmington, Delaware. “We’ve been focusing on the retail initiative for the last 3 or 4 years, helping CORFAC firms recognize the importance of retail services and gradually educating them — building a strong collective retail capability.”

The CORFAC firm affiliation model is perfect for retail, according to Latina. “It is about sharing information and referring clients. It is natural for retail to fall in place within this model. Retailers, more than any other clients, require additional sites nationally,” he says.

“Retail is also important to office and industrial,” says Gay Legg, vice president of marketing with Manekin/CORFAC International in Columbia, Maryland. “‘Mixed-use’ is the name of the game.”

Richard Chase.

Richard Chase agrees. Chase, a broker with Bitzer Real Estate Partners/CORFAC International in Denver, says, “With the evolution of lifestyle centers, blending the market with office, retail and multifamily, it is inevitable that brokers have to understand retail.”

Latina notes that any urban renewal or expansion into suburban areas is led by retail. “Retail generates disposable income, it generates people and it spearheads development,” he says.

However, he says, “retail is a niche market, very unlike office and industrial.”

Chase explains, “Retail is more demographic- and site-specific. It relies more on income and statistical data, and it requires more thought and research to find the right site for a client.”

This research involves local knowledge and resources, but in today’s market, clients also need international representation.

Dicky Darrell.

“Real estate is becoming a global commodity. With the Mexico affiliates and King Sturge, CORFAC has something that a lot of firms doing retail do not have,” says Dicky Darrell, a broker with Manekin/CORFAC International. “Historically, firms have focused on one or two things. Now we have to be more cognizant of what is going on in our markets and globally. Clients are looking for brokers that can offer more services. Firms need a far-reaching group of people.”

“CORFAC is taking the leading role as a real estate association,” says Legg. “The organization is primarily affiliated with office and industrial but it has a global reach which is a better value to retail.”

The organization is not mandating that CORFAC firms hire retail brokers. However, Bennett says, “those firms not currently involved with retail do need to have a relationship with a retail firm in their market so they can handle retail needs through that association.”

CORFAC International has also considered opening affiliation to specialty retail firms in markets where CORFAC does not have retail representation, but Bennett says that the point has not been decided.

Gay Legg.

The organization will be present at the International Council of Shopping Centers’ Spring Convention for the second year in a row.

“Our collective presence at ICSC is key to our marketing effort,” says Bennett.

Legg agrees. “Going to ICSC puts everyone in one place at one time. Many deals are accomplished or started at ICSC.”

CORFAC is also focused on growing a specialty group of retail brokers who compare notes about trends and share information about the retail industry. And, as has been the history of the organization, much of the retail initiative will grow from the local level, with brokers talking retail to clients and sharing referrals.

CORFAC Brokers On Retail Trends “In urban markets, land is so expensive that the days of one property type are over. We’re seeing many business parks with retail as a component — big box retail at the front and small restaurant parks within office developments. There is no shortage of retailers — there is a shortage of space.” — Dicky Darrell, Manekin/CORFAC International “We’re going to see more convenience care: in-line healthcare. Right now these tenants are embedded in stores, like Wal-Mart and grocery stores, but there is also interest in moving to in-line spaces to offer convenient healthcare.” — Richard Chase, Bitzer Real Estate Partners/CORFAC International “Restaurant pads sites, and restaurants in general, are an extremely important component to all types of retail development projects.” — Joe Latina, Patterson-Woods & Associates/CORFAC International

©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.