TCC senior management developed a growth strategy for its stores to grow from 250 stores to over 2,000 locations. During this process senior management of TCC also recognized that a number of the functions within the company would need to be enhanced and strengthened to handle the growth, including real estate. After a competitive process, our team was hired by TCC for strategic planning, process improvement, store criteria development, exclusive representation of TCC at all locations on a national basis, software and lease administration consulting, benchmarking and KPI development, personnel enhancement, and C-Suite reporting.
APPROACH
After review and understanding of all real estate property and department information, our team completed an 18 month strategic plan for the department and approach to overall functional/property improvements. We initiated a national brokerage support program, identifying the strongest brokerage firm in the major regional markets (40 states) TCC was located. This included training, process outlines, client understanding, LOI, and Lease negotiations.
Together with TCC we reviewed available software applications for lease administration along with third party lease administrators. Vendors were chosen in each area and implemented. This included approx. 500 lease abstracts.
Our team managed at both a high level and regional level all store relocations, renewals, market data and recommendations to the TCC real estate committee.
RESULTS
Our initial replacement of existing lease administration software and process resulted in a $400k savings the first year. We were successful in addressing in the initial 3 months the over 150 leases that had expired but were operational when we took over the account management. This provided protection to TCC on their revenue and net income stream.
The formalization of the national brokerage teams saved TCC tremendous time and effort through our single point of contact management, consistency of delivery of materials, timeliness of reporting and standardization of fee structures and costs.
Our team created a new ‘decision support” application that has been used daily by TCC and all real estate functions. The application is used for (a) REC decision support and presentations, (b) a data warehouse for all TCC RE and key operating information, (c) centralizing all broker input on market and location recommendations, options, site plans, market data and other key items, and (d) the resource to export all possible RE and operating data for KPI and benchmarking analysis, along with a dashboard of current real time metrics.
Our team processed a build to suit RFP program to allow TCC to define the most efficient partner for retail BTS locations – cost efficiency, quality of product, areas of coverage, and standardization of agreements and rent factors. We provide legal support for all business acquisitions (approximately 600 to date), expediting the completion time and reducing costs.
We have worked closely with TCC in the ever changing RE functional structure to meet the changing needs of the company.
