The Art & Science of Developing Iconic Retail Properties with Terry Montesi (#431)

This week Chris sits down with Terry Montesi, Founder and CEO of Trademark Property Company, a Fort Worth developer of retail and mixed-use real estate he started in 1992.

Terry was last on the show in 2019, in the middle of what the business was calling the retail apocalypse. They have closed four retail deals in the last 30 days, more than they have ever closed in a month, and Terry now says retail is the best asset class in the country.

They get into why almost no new retail space got built for 17 years, what that shortage is doing to rents, and his playbook for creating value at each of his centers.

They discuss:
• Why almost no new retail space got built for 17 years
• Why retailers started volunteering higher rents on their own
• The call from a city manager offering to cover a $5 million gap
• How a pop fountain landed Tommy Bahama as a tenant
• What one grocery lease did to the returns on an entire project
• Why he turned down the chance to take the company public
• What he is doing to make sure Trademark outlasts him

Timestamps:
(00:00) Intro
(00:54) How Retail Went from Apocalypse to Top Asset Class
(05:31) Why Retail Vacancy Is Down to 4.4%
(09:49) How Arlington Helped Trademark Win Lincoln Square
(16:15) Picking Tenants with Demographics and Expected Distance
(21:15) Why Tenant Build-Out Costs Have Doubled
(23:44) The Tommy Bahama Deal That Proved Placemaking Pays
(31:08) Dunham Point and Landing Whole Foods Late
(37:09) Why Trademark Never Became a REIT
(41:54) Getting Back into Development and Launching Multifamily
(49:33) The Southlake Deal and an $18 Million City Incentive
(54:17) Why Capital Chases Grocery-Anchored Retail
(58:45) Succession Planning and Keeping Trademark Independent

===

Presented by Juniper Square:

Juniper Square
Juniper Square is the operations partner for GPs in private equity, venture capital, oil and gas, real estate, and infrastructure. It brings technology, data, and administration together on one governed source of truth you own, so your team spends less time reconciling and more time running the firm your LPs are backing. Learn more at https://www.junipersquare.com/powers

===

Sponsored by:

Collateral Partners
Collateral Partners builds institutional-grade investor materials for private credit, private equity, real estate, and family office firms, the kind of marketing collateral that helps you close capital. Learn more at https://collateral.com/powers

True North Advisors
True North Advisors is a multi-family office and private wealth advisory firm serving business owners, entrepreneurs, and families since 2000. With over $5.6 billion under management, they're real investors offering conflict-free counsel and portfolios built around your life. Learn more at https://truenorthadvisors.com

Relay Human Cloud
Relay Human Cloud gives you pre-vetted, fully managed global talent for up to 75% less than hiring locally. Your best people stop doing repetitive work and get back to the work that moves your company forward. Learn more at https://www.relayhumancloud.com/powers

===

Chris on Social Media:
X: https://x.com/fortworthchris
Instagram: https://www.instagram.com/thepowerspodcast
LinkedIn: https://bit.ly/45gIkFd

Watch POWERS on YouTube: https://bit.ly/3oynxNX
Visit our website: https://www.powerspod.com/
Leave a review on Apple: https://bit.ly/45crFD0
Leave a review on Spotify: https://bit.ly/3Krl9jO