Case Study

7-ELEVEN TENANT REPRESENTATION ASSIGNMENT

       

The challenge

Jacksonville is the only market in the country  where 7-Eleven is undergoing a new market expansion. Their goal is to have 60 units in the Jacksonville MSA within three years. The challenge lies in coordinating and organizing a market expansion of this size. 7-Eleven deal types include in-line leases, ground leases, developer build to suits, fee simple purchase and business conversion of existing convenience stores, so Colliers International had to familiarize themselves with the different processes related to each transaction type. Another challenge is that 7-Eleven does not typically do exclusive brokerage representation, but in Jacksonville they decided to give Colliers an exclusive representation.

The strategy

The strategy for the expansion revolved primarily around the commands of 7-Eleven’s operations department. 7-Eleven delivers fresh food every night to their stores in Jacksonville from Kissimmee, Florida. Logistically, the new 7-Eleven locations had to be spaced appropriately so in the beginning one truck could service the first wave of stores; as more stores opened, more trucks would come up. It would not have been logistically feasible to enter the market with stores that were too spread out.

The services

Colliers International is managing new site selection, obtaining market information on new sites and completing necessary 7-Eleven internal market survey information. Colliers is also in charge of handling the negotiations for each transaction and helping with preliminary due diligence for each property.

The results

In the first six months of winning the assignment, Colliers has completed 4 leases and has 29 other transactions either under contract or in lease negotiations. By the end of 2011, 7-Eleven expects to have 14 leases signed or contracts closed, with the first wave of stores opening in February 2012.

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