SLM profile


Opportunities E


Ancillary


ric Richter, vice-president of property management for Phillips Edison & Company in Cincinnati, OH, maximizes temporary revenue from the parking lot to the rooftop—with nary an RMU in sight.


Prior to 2008, Phillips Edison’s leasing professionals handled


both permanent and temporary leasing deals. With permanent deals generating the majority of income they were naturally the main focus. At that time, only a handful of Halloween deals constituted temporary inline accounts, and sales in this category were not tracked. Even the Halloween deals they executed were ones where retailers called the company, not the other way around.


Richter says the move to more well defined and categorized temporary deals resulted from customer demand. “Property managers were getting calls requesting temporary opportunities and we didn’t have a department 100% focused on that,” he says. In the fourth quarter of 2008,


92 Specialty Retail Report n Winter 2012


Richter put in place a temporary, or ancillary income program that today generates sizable revenues. In the first full year, Phillips Edison & Company brought in over one million dollars worth of temporary tenant revenue (temporary deals were not separately tracked prior to this). In 2010, sales doubled. According to projections for sales in 2011, the sales are expected to double yet again. “We created over 2 million dollars in volume out of nothing,” says Richter. Some of the first programs we implemented included carnivals and firework stands. We visited local carnival owners and asked them if they wanted to set up in our parking lots when they weren’t at the local fairs. We also networked with national fireworks operators to leverage our portfolio size with their need to have multiple retail outlets. “The ancillary income program [was created] in response


to a challenge to help increase income during the most recent economic downturn. Our regional managers are on the ground


SpecialtyRetail.com


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