STUART: HANDS OFF SAYS STEVE
FORBES.
WE HEAR THAT.
STEVE, STAY THERE, PLEASE, A LOT
MORE FOR YOU.
OUR NEXT GUEST, THIS IS
INTERESTING OCCUPATION HERE, THE
MAN BUYS GHOST MALLS, THEY ARE
ABANDONED, HE CONVERTS THEM,
THIS IS UNUSED RETAIL SPACE,
RECONVERSE INTO SOMETHING ELSE,
THAT MAN ON THE SCREEN, SCOTT
SHIELD, THE FOUNDER AND
PRESIDENT OF COMMERCIAL ACADEMY,
HAVE I GOT IT RIGHT?
>> YOU DO.
STUART: YOU GO AFTER THEM -- YOU
GO FOR THEM AND BUY THEM, WHAT
DO YOU CONVERT THEM INTO BECAUSE
THERE'S TOO MUCH RETAIL SPACE
AROUND?
>> YOU'RE SPOT ON, THERE REALLY
IS TOO MUCH RETAIL SPACE AND
WHAT YOU'RE SEEING IS, YOU KNOW,
WE TALK ABOUT AMAZON AND IMPACT
ON RETAIL, AMAZON AND ONLINE
SALES REPRESENT LESS THAN 15% OF
THE OVERALL MARKETPLACE, SO
THERE'S A TON OF SOLID ACTIVITY
GOING ON IN THE RETAIL SPACE,
THAT SECTOR HAS LARGELY BEEN ITS
OWN PROBLEM.
WHAT'S KILLED THEM ALL IS IN
MOST CASES HAS BEEN NEW MALLS
AND DEVELOPER PROFITS THAT COME
FROM, YOU KNOW, BUILDING BIGGER
AND SHINIER FACILITIES.
STUART: YOU BUY IT, BUT WHAT DO
YOU CONVERT IT INTO, GYMS OR
CHURCHES, WHAT DO YOU DO?
>> WHAT YOU'RE DEALING WITH IS
CATEGORY THAT HAS MOST LOCATION
SPECIFIC DATA AND ANALYTICS OF
ANY CATEGORY IN COMMERCIAL REAL
ESTATE. THE MOST WELL-LOCATED
REAL ESTATE IN THE COUNTRY,
UNFORTUNATELY BECAUSE THEY
DOUBLED DOWN AND WHEN YOU BUILD
THE NEW SHOPPING CENTER AND YOU
TALK ABOUT THE, YOU KNOW,
VICTORIA SECRETS OF THE WORLD,
THEY HAVE TO LOCATE IN THE NEW
MALL TOO, THEY DIVIDE CUSTOMER
BY HALF, IT'S BEEN THAT CYCLE
THAT'S CAUSING, CREATING THE
PROBLEM.
STUART: WHAT DO YOU DO WITH
THEM, WHAT DO YOU TURN THEM
INTO?
>> WE LOOK AT THE VALUE OF THE
LAND ITSELF, A LOT OF TIMES IT'S
IT'S ADAPTIVE REUSE, BECAUSE OF
TAX CUTS, THE MANUFACTURING, THE
DISTRIBUTION CENTERS IN THE WAY
THAT THE MARKETPLACE HAS
CHANGED, OUR BIG BOXES ARE BEING
REPURPOSE VERY WELL FOR
DISTRIBUTION MANUFACTURING,
LIGHT INDUSTRIAL, TYPES OF
THINGS AND DOING INCREDIBLY
WELL, WHEN YOU TALK ABOUT THE
MOST WELL-LOCATED BMC MALLS, YOU
TALK ABOUT WHAT HAPPENED WITH
GENERAL GROWTH PROPERTIES, THE
ACQUISITION YESTERDAY, THAT WAS
PRESERVE CLASS A MALLS.
STUART: I'M INTERESTED WHAT IN
DEVIL ARE YOU GOING TO DO WITH
GHOST MALLS?
>> ONE IS ADAPTIVE REUSE AND
TURNING IT INTO DISTRIBUTION
WAREHOUSE.
STUART: YOU'RE TAKING T -- IT
DOWN?
>> BRING IN BULLDOZERS AND GET
RID OF BOXES.
[LAUGHTER]
>> JC PENNIES, THEY WERE THE
AMAZON OF THEIR DAY.
STUART: I WANT TO KNOW WHAT THE
TENANTS, NEW TENANTS DO WITH
CHURCHES MOVING IN?
>> ABSOLUTELY.
YOU WANT TO STAY AWAY FROM THAT,
NOT THAT WE ARE ANTICHURCH.
STUART: WHAT'S WRONG WITH THIS?
>> YOU ARE VACANT DURING THE
WEEK.
STUART: THEY CAN'T AFFORD A LOT
OF RENT.
>> YOU WANT TENANTS FEEDING OFF
OF ONE ANOTHER.
STUART: OKAY, I'VE GOIT.
YOU BULLDOZE, REPURPOSE, REDO
THE BIG BOX, DISTRIBUTION
CENTERS.
WHO ELSE MOVES IN?
>> WE ARE WORKING WITH FITNESS
FACILITIES, SERVICE PROVIDERS,
RESTAURANTS, RETAIL FACILITIES
THAT ATTRACT TRAFFIC BUT NOT
NECESSARILY RELYING SO HEAVILY
ON APPAREL, NOT WEAR AND THINGS
OF THAT NATURE.
STUART: THE NEW GUYS WILL NOT BE
PAYING NEAR THE RENT THE OLD
GUYS.
>> THAT'S CORRECT.
THE THING HERE -- STUART: YOU'RE
BUYING PENNIES ON THE DOLLAR.
>> HUGE DISPONT.
STUART: BIG SMILE.
[LAUGHTER]
ASHLEY: GOOD FOR YOU.
STUART: VERY INTERESTING JOB.
>> ABOUT WHAT HEALTH CARE,
WALK-IN CLINICS AND THE LIKE.
>> GREAT SECTOR WHICH YOU DEAL
WITH THERE IS THE OPPORTUNITY
FOR, AGAIN, REALLY WELL-LOCATED
FACILITIES AN OPPORTUNITY TO
DEAL WITH ASSISTED CARE, WHERE
YOU'VE GOT AMENITIES THAT ARE
BASED REALLY ON PROPERTY, IT'S A
REAL OPPORTUNITY.
STUART: THERE YOU HAVE IT.
SCOTT SHIELD BUYING PER PENNIES
ON THE DOLLAR, TURNING IT AROUND
AND MAKING A FORTUNE OUT OF ALL
OTHER PEOPLE'S MISERY, WHAT A
GUY.