ISPT

PROJECT

Food & Beverage Portfolio Wide Calculator – Commercial and Retail Assets

TASK

ISPT owns and develops high quality properties in the office, retail, industrial and residential sectors throughout Australian capital cities and regional markets. ISPT sought a suite of tools to help their Property Investment Managers (PIM) assess what opportunities were available to improve and expand food and beverage tenancies within their assets. With data available from a pool of more than 80 commercial and retail assets, B&P were tasked with generating tools that could identify quick wins for ISPT, determine how much food is sustainable, benchmark current performance and identify which upcoming lease expiries in the portfolio should be retained, exited or replaced.

OUTCOME

Using proprietary planning ratios B&P has built from industry benchmarks, we were able to create a dynamic calculator and portfolio management tool. Once data from a current tenancy schedule was populated into a data entry form within the calculator, a PIM was able to select from a drop down box any particular asset and then select a range of “conditions” that might affect the Centre such as an increase to lettable area, or changes to mall traffic and the calculator would produce a colour coded result outlining the appropriate number of F&B tenancies for the asset (green for underprovided/opportunity or red for over supplied).

From a lease management perspective, the calculator would compare tenancies against cuisine types, categories and lease expiry profile. It would then highlight how existing tenancies were performing against a range of benchmarks to indicate the relevance of the store to the trade area and whether it should be retained in the mix, replaced or had potential to improve with some assistance.

At a glance, the calculator allows for ISPT to review F&B within their assets from both a portfolio/regional-wide and an individual asset basis, assessing rental performance (client income) and potential upside.