Richard Crenian Blogs
March 10th , 2009
“The Real Genius” by Richard Crenian
A lot of people ask my business partner, Howard Manley, why and how we pick our shopping centers to buy and operate.
It’s really a simple model, don’t overpay and buy the tenants.
So in a recessionary time what kind of tenants don’t you want, and what do you want?
Anything associated with the downturn of housing. (It sounds simple doesn’t it?)
For example, Furniture stores is a big No-No, furniture suppliers and anyone associated with appliances, car dealers, manufacturers of large household goods, boat dealers, any association to boat dealer suppliers, pretty what anyone is not buying right now, you don’t want that industry as a tenant.
Medical, Doctors, Professionals, Repair shops (cars, boats, furniture etc), movie theatres (escapism), Ma and Pa day to day daily needs. Stores promoting “green products” are hot these days, post offices, government agencies, in other words that people can make enough money to pay the rent.
Circuit City is now down the tubes, North American car dealers are shutting their doors, so common sense is always the best way to go. Doesn’t that make sense? That’s the real genius, keeping a handle on the market place, and adapting your tenancies to fit the times.
So the genius is to keep things simple and non complex. Life is easy, no. Work hard, invest in cash flow and relax in Arizona. Ask Howard, he’s planned his life that way for forty years to get to where he is. Call him; he will explain it to you. 4036304544. If you get the answering machine, you know he’s golfing!