Connection Rising Star: #Recon2015
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INSIDE THIS ISSUE: Patio Season .................................................. 1-2 THE Program Recap..................................................3 Member Profiles ...............................................4 Connection Rising Star: #RECon2015 ................................5 Minnesota Marketplace ............................... 6-7 24th MSCA Golf Tournament .................... 8-9 MSCA 2015 Golf Winners ......................10-11 Click on article MSCA Leadership ..........................................12 title to link directly Calendar of Events & Corp. Sponsors .........13 to that page! STARRSM Awards Nominations .....................14 JULY 2015 FEATURE ARTICLE Patio Season by Michael Landstad, MID-AMERICA REAL ESTATE – MINNESOTA, LLC Summer is upon us and with those basis where other’s choose to use like the old real estate adage goes… Patio business beautiful days ahead it’s inevitable the more traditional reservation location…location…location… equates to that those that like to dine out will method. With a popular patio means everything. If you’re able big seasonal be making it a point to spend a destination, one method may foster to procure a location that gets dollars little quality time at their favorite earlier business whereas patrons vehicle drive-by exposure you’re as some outdoor patio. Whether its meeting know that reservations are not an already setting the stage for the establishments friends and family for dinner, taking option and thus the parties arrive consumer to note your business as a experience a in some sun at a lunch meeting, prior to peak business hours in destination prior to even exiting the 30% to 50% or kicking off the weekend with efforts of securing the table before vehicle. It may sound shallow, but increase in some well-deserved happy hour - the inventory is already gobbled if your establishment is graced with sales during Minnesotan’s and visitors alike flock up. Some operators may offer patio beautiful people as you drive into a those months. to well run and well-designed patios. only promotions (e.g., ½ price facility – many people are naturally happy hour) and others may create attracted to that location. Believe Minnesota’s patio season typically an entirely different high energy/ –continued on page 2 runs from Memorial Day to Labor party atmosphere with the use of Day. If we’re able to squeeze in a music, visuals, and task their staff little on front and a little on the back with pushing alcoholic beverages. of that schedule, all the better! Patio Conversely another operator business equates to big seasonal may find its niche by offering its dollars as some establishments customers live classical music and a experience a 30% to 50% increase in more serene environment. sales during those months. Rumor has it that one popular destination Regardless of the operators’ on a well-known area lake doubles concept, the patio is typically a its sales volume during the separate specialized operation season. For most, the patio square overseen by the general manager footage is not part of their leased of that institution. I met with a few premises to which their minimum operators to pick their noggins rent is calculated. It’s more of a on what works, what doesn’t, and seasonal added bonus time for the any tricks of the trade that they operator (Pssst…make sure to get wanted to share. One common that percentage rent breakpoint denominator from the meetings clause in your lease). How those was that each manager agreed that individual operators choose to run the patio is about the experience. those operations vary greatly. For It’s about creating a buzz. It’s about example, some may choose to offer being seen. It’s where people want their table tops on a seat-yourself to be. For these reasons and just july | 2015 FEATURE ARTICLE CONTINUED: Patio Season to conduct your due diligence with Direct that particular municipality for a sunlight clear understanding of the process. may not be It’s also important to understand desirable to the Landlord’s internal rules and some and for regulations on patio operations as others may some may be restrictive to the plan be the only design of that user. reason they We’ve got rooftop patios, waterfront are sticking patios, patios with retractable around roofs, patios with putt-putt golf, longer. patios that offer lawn bowling, and patios offering outdoor movies. The options are many and the competition is fierce. It will be interesting to watch what the new trend in patio dining/entertainment will become. One thing is for sure, it or not, I was aware of a manager presence obviously caused quite a as consumers and landlords, we love of a restaurant that would seek out commotion for some of the guests. the experience that the patio brings beautiful women and buy them free That same manager explained to our summers and our tenants are drinks if they would sit on his patio. scenarios where patrons would demanding the ability to incorporate Ingenious marketing? It worked complain about a bug in their food them into their business model. As for him as his patio became a prime or beverage and how there can’t one owner I spoke to put it, “No destination for the demographic he be the same expectations that you patio – no lease.” We’ll see you out was targeting. might have in the interior dining there…enjoy the summer! n room areas of a restaurant. “We’d go Once you have a captive audience, broke replacing food and beverages what keeps them around? With out there,” he said. The direction our climate we know that we’re at a patio faces can also impact the the mercy of the weather first and duration spent by a patron. Direct foremost. The magic number is sunlight may not be desirable to 62 degrees. This seems to be the some and for others may be the temperature where most people only reason they are sticking around find it comfortable to be outdoors. longer. Other amenities that may Many patios are equipped with impact a stay are awnings, TV’s, heaters to help push that threshold scenery, plantings/flowers, and and increase the stay of the guest. external noise. These heaters can be stationary hard plumbed units (natural gas) Let’s dive into the formality portion or movable units fueled by propane of being able to offer a patio as part tanks. Peak business times for of a restaurant business. Different patios are normally from 5pm to municipalities have various 8pm (or sunset). Let’s not forget restrictions. Some may require the about other external factors that will area to be fenced or demised with impact a person’s stay on a patio. a use of a railing, others may not First, let’s talk bugs and/or animals. require any type of barrier. Some Depending on where the patio is may have the operator execute situated you may have mosquitos an Encroachment Agreement in or flies that are a nuisance. One order to have a patio. Some may manager shared with me a story allow alcoholic beverages and some where there was a muskrat that may not. The requirements and found its way on the patio and its restrictions vary greatly and it’s best 2 july | 2015 JUNE 2015 PROGRAM RECAP by Brandon O’Connell, MID-AMERICA REAL ESTATE – MINNESOTA, LLC The June MSCA program SPEAKERS FOR THE JUNE PROGRAM RECAP INCLUDE: featured an in-depth update on the renovation and expansion projects of three of the largest and most well-known shopping centers in the Twin Cities. This program featured a unique format as it was held at the Icon Theatres in the West End across the street from the Double Tree Hotel where the MSCA monthly programs typically occur. Joan Suko of General Growth L AURA MCGraw LIZ MCLAY Joan SUKO Moderator: Properties covered the renovation Cushman & Wakefield/ Mall of America General Growth Michael G. SIMS and expansion of the Ridgedale NorthMarq Properties, Inc. Mid-America Real Estate Center. The focus on this renovation – Minnesota, LLC and expansion was geared towards power center to gain an edge on of office, retail, restaurant and creating a great customer experience competition. This was accomplished hotel space. Liz covered the goals with implementing features based through the relocation of existing behind the project which included on consumer trends. As part of the tenants and addition of new tenants refreshing the design of the mall, project, Nordstrom department such as: Mattress Firm, Nordstrom support sustainability and the store is aiming to be open on Rack, Noodles & Company and addition of much needed amenities. October 2nd, 2015 which required Smashburger to name a few. While One of the amenities that Liz the relocation of several tenants. Laura and Cushman were not on covered was valet parking at the mall Along with Nordstrom’s, most of the project at the conception, she to ease accessibility for customers the mall’s renovations should be was able to provide intimate details which has plagued the mall at completed this fall. on the renovation and goals for the times. This was important because Laura McGraw of Cushman & future. 60 percent of visitors to the mall Wakefield/ NorthMarq covered the The program concluded with Liz are local shoppers with 40 percent transformation of the Shoppes McLay discussing the renovation visiting from out of state. The 14 at Knollwood. The focus on this and expansion of the Mall of story J.W. Marriot and the additional expansion was transforming America which is a $325 million office and retail space are expected Knollwood into a thriving new project that includes the addition to open this fall. n PROFESSIONAL SHOWCASE: HORIZON ROOFING Established in 1976, Horizon Roofing has installed millons of sq ft of roofing, won 33 awards because of our quality, made the INC 5000 fastest growing companies for the past 3 years, and developed the #1 reporting system in the U.S.