The real estate market is in flux. From brick-and-mortar retail falling out of favor, to the future of offices up in the air, many companies have had a hard time pinpointing smart commitments in physical spaces. Whether a company is in the restaurant game, the retail business or any other space occupier, many are locked into physical spaces that are no longer serving them efficiently. These financial commitments in real estate can be daunting when they’re not paying off. Yet, with a little creativity, companies can find the ROI of real estate in even the hardest of situations.
Start Thinking… Corporate Trade
One route many companies don’t know of is corporate trade. This is a strategy employed by forward-thinking businesses, effectively transferring ownership of unwanted locations and/or leaseholds at full original cost/exposure to a third party in exchange for future media purchasing activity. There’s often opportunities to trade in real estate, freeing you up from the financial burden. For example, one large national pet retailer had purchased a 170,000 -square foot distribution center and traded ownership to Evergreen Trading due to an operational consolidation. This move allowed the retailer to gain instant liquidity, unburden their over-burdened supply chain and gain the certainty of sale of the real estate at their desired asking price.
As consumer retail consumption patterns and workplace strategies continue to evolve, the impact on the real estate market will be uneven, leading to winners and losers. Warehouses, retail space, endless empty offices, and abandoned office-parks. As work and commerce keeps evolving, real estate has become a sore spot for many companies. Evergreen Trading is not here to just identify the problem, but to remind you that Evergreen has solutions. The team has extensive experience with all types of real estate challenges, including leased properties. By implementing a media trade program with Evergreen Trading, companies can generate incremental capital to offset unwanted leases and recoup what would have been non-recoverable impairment costs.