California Centers

MAY 2017

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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May 2017 | California Centers Magazine 33 C C C enters Business Management (CBM) is celebrating a mile- stone anniversary this year. While many local leasing and man- agement companies failed to weather storms like the savings and loan cri- sis and the Great Recession — not to mention the changing nature of the retail environment and fickle SoCal consumer base — CBM has emerged stronger than ever. The company was created by La Mancha Development (now operating as Dynamic Development) in 1987 to act as a third-party management and leasing company for all the develop- ments it had in its pipeline. "The 'men of La Mancha,' Sam Bachner and Marvin Levine, have built more than 1,400 centers since they've been in business," says Rick Rivera, CBM's president and chief executive officer. "Centers Business Management has been along for that ride to the benefit of all their owners." CBM has grown from one office in Los Angeles. It has added others in the San Fernando Valley submarket of Encino; Orange; and a satellite office in San Diego. The company covers an area from Santa Barbara to San Ber- nardino and San Diego — and Rivera doesn't think CBM is finished expand- ing quite yet. "The Orange County operation continues to thrive and grow," he says. "Over the next decade, we hope to push farther south, making greater inroads into Orange and San Diego counties, in addition to north- ern expansion into Ventura County. Ultimately, our long-term goal is to increase CBM's brand recognition throughout Southern California." The firm is also expanding its ser- vices platform. Though CBM prides itself on assisting strip center and retail property investors with daily management duties, tenant relations, common area maintenance and val- ue-enhancement strategies, it is look- ing to strengthen other areas of oper- ation as well. "While property management and leasing will always remain our prima- ry focus, CBM intends to increase our overall brokerage services operation," Rivera says. CBM currently manages and leases more than 600 shopping centers, total- ing more than 10 million square feet across Southern California. The firm negotiates more than 300 new leases each year, representing a lease consid- eration ranging between $18 million and $24 million, a pace that has steadi- ly grown for nearly a decade. CBM has negotiated leases in thou- sands of the Southland's retail cen- ters over the years, and currently lists more than 400 retail properties. Recent lease transactions include Ross Dress for Less absorbing 26,255 square feet at a community shopping center in Covina and Sketchers Shoes leasing 1,600 square feet along a retail row in Manhattan Beach. The firm is turning to services and internet-proof tenants to fill the void in some centers. "Our philosophy is simple," Rive- ra continues. "You can't grab a quick meal on the internet. You can't get your nails or hair done online. You can't get a massage online, either. In many communities, cell phone retail- ers, auto title loans, tax preparation and insurance services are all likely to be purchased in a physical location rather than online for the foreseeable future. And CBM will be there to rep- resent landlords and broker deals in those communities." CBM already is there. The company recently leased 1,600 square feet of space to H&R Block at a re- modeled retail cen- ter in Long Beach. The space is situated at the intersection of 7th Street and Redondo Avenue and includes oth- er service-oriented tenants like the UPS Store, Starbucks and Supercuts. There have also been leases with gyms like Curves for Women in El Monte; super- markets like Mitsuwa Marketplace in Torrance; medical tenants like Miracle Ear in North Hollywood; showroom spaces like Wynstan USA Inc. in En- cino; and credit unions like Post City Financial Credit Union in Long Beach. Rivera believes it's his team's job to adapt with the trends, while differ- entiating short-term fads and tenants from those most likely to produce long-term success. If CBM stays this course and continues to grow its pres- ence, foster its relationships and refine its skills, Rivera is more than confident the firm can weather the next 30 years. "The resiliency and adaptability of the shopping center industry contin- ues to amaze us," he says. "Trends in use-types come and go. Some succeed and endure over the long haul, while others disappear as quickly as the fad that inspired that tenant. But as long as space is available in Southern Cali- fornia, tenants will continue to lease it up. Want proof? We field hundreds of prospective tenant calls every week, week after week, month after month, year after year."CC CBM REMAINS SOCAL STRONG FOR 30 YEARS The shopping center leasing and management specialist has remained a Southern California staple among owners for the past three decades. By Nellie Day Rick Rivera President and CEO CBM

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