News
Subject: KEYNOTES ARTICLE RELEASE
Topic: News from ORANGE COUNTY LAMBDA ALPHA
Meeting: March 19 , 2012 Meeting, The Pacific Club, Newport Beach, CA
“A Unique Benefit of LAI Orange County Chapter Membership”
Among the many non-profit civic and professional organizations that we all have opportunities to belong, Lambda Alpha provides speakers willing to disclose valuable insight into their experiences and strategies that produced both success and failure. Their willingness to speak openly is largely attributed to an assurance that the LAI audience comprises a relatively small number of highly experienced professionals. Our Orange County chapter possesses this reputation and is able to attract top flight real estate executives that feel comfortable and willing to tell their company’s story without spin.
The March luncheon presentation by Patrick Donahue, Donahue and Schreiber was the epitome of what our Lambda Alpha chapter is all about. It was a great learning experience in an intimate, behind closed doors venue where he felt comfortable telling his company’s unedited story. Attendees gained an inside look at his company, warts and all. He felt comfortable as he looked around the room and saw top industry people whom he trusted and would understand what he was talking about and keep what he said close to the vest. This value to membership in our chapter is a rare benefit.
“What’s Happening in Retail” was the topic of Donahue’s unbridled presentation that flowed beautifully without notes or visual aids. The firm of Donahue and Schreiber is a leading owner/manager of eighty neighborhood shopping centers most of which are in California. Patrick refers to them as “necessity centers” being those that attract repeat customers who return to shop three to four times each week. Theirs are anchored by national grocer and/or pharmacy chain stores that are heavy users of media advertising as opposed to unanchored “strip centers” that lack competitive drawing power.
Maximizing investment return requires a proper balance between shops and credit anchor tenants. Shops tenants pay higher rents luring many owners and managers to overbuild shops space risking higher tenant turnover and higher vacancy rates particularly during downturns in market cycles. Donahue and Schreiber results during the recessionary market from 2007-2011 proved their centers suffered fewer vacancies due to the stronger customer loyalty and stronger financial health of their tenants. Despite many successful years of 95-97% occupancy rates, Donahue and Schreiber felt this recession required a major shift in marketing strategy which Patrick outlined in some detail. Apparently, they hit on the right one as their West Coast centers have maintained above 90% occupancy throughout this period. I won’t elaborate as much of their strategy I consider proprietary. I close by suggesting members make every effort to attend our meetings to avoid missing out on the critical insights gained from industry leaders like Donahue and Schrieber.
Wayne Silzel
Orange County LAI Scribe