Philippe Coulom

Co-founder and associate director of Valream

Finding tenants is great, but it takes much more for it to work

Philippe Coulom calls himself an “asset developer.” For more than nine years, his company, Valream, co-founded with Pascal Veïsse, has been buying and upgrading real estate assets on behalf of investors. In the retail sector, the company focuses on acquisitions of ground-floor spaces and shopping arcades, while the leasing aspects are handled by outside specialists.

Is leasing a retail asset best left to the specialists?

This is a line of business truly requiring specialists in retail. First of all, the leasing agent must be capable of evaluating the asset in the same way any retailer would do. This can often require the courage and the ability to tell the lessor that he has grossly overestimated the rental value of the asset. Secondly, the agent must have an understanding of the economic and psychological factors weighing on decisions, both in the case of chain retailers and independents. It takes true savoir-faire to negotiate with someone who invests, in a sense, his or her entire life in a 20-square metre shop. Lastly, because distribution constantly evolves, new brands emerge every day. It’s not enough to have a good network; you also have to keep up with the continual flow of innovations.

What changes do you see coming in the role of leasing agents?

They must play more of a consulting role, by which I mean supporting the retailer and aiding the owner’s decisions, both being connected. It isn’t their approach that’s in question, because leasing agents are generally there to advise owners and tenants. It’s more a question of know-how and having the right tools. The agent must be proficient in a whole range of skills well beyond the act of leasing, encompassing financial, legal and technical aspects. It’s in everyone’s interest that the retailer prospers in his location, so it’s important to help him prepare a business plan, get estimates for fitting out the shop, etc. As for the owner, the question boils down to Yes or No: should he accept this tenant or not, knowing that the lease contract will be for nine years. The owner needs an agent truly capable of appraising a situation for the long term. Leasing agents today must master all these skills. Signing a lease is great, but it takes much more to ensure a long-term relationship between the occupant and owner!

Is a local presence important?

In Avignon, we bought and renovated the Court’In shopping arcade, an asset with plenty of potential that wants to attract both national and local retailers. The team at Convergences-CVL, who have worked with us from the beginning of the project and who handle the leasing, advised us to first build a line-up of local shops to give the location a measure of stability. It’s important to reach out to these retailers with local roots, to convince them of the possibilities, and help them prepare an application. The smart move, in our case, was to entrust part of this task to a locally-hired shopping centre manager who has a good network and who knows the business. Her role actually goes beyond this initial leasing stage because, once the shops are set up, the interface between us and them must be built for the long term, to ensure that all goes smoothly.