MODEL DESIGN
How to Build a Retail Shopping Center Pocket Model
Overview
ARTICLE IN PROGRESS
We're writing a deep engineering essay on AQ-300. How we built it, the design choices behind it, and how to use it. The model itself is live and available today.
AQ-300 is a single-tab retail screener that treats a shopping center as two GLA buckets, anchor and shop, with a blended NNN recovery assumption. It exists for the first thirty minutes of triage on a teaser that doesn't include a tenant-level rent roll. The verdict is whether the deal warrants a real model.
Planned Sections
When the full piece is published, it will cover:
- The screen: triaging retail centers without a tenant-level rent roll.
- Design choice: anchor / shop GLA split as the only segmentation.
- Design choice: blended NNN recovery assumption.
- What this pocket cannot do (no percentage rent, no cotenancy, no anchor turnover).
- When to graduate to AQ-301 or AQ-331.
- How to use the pocket in a brokerage workflow.
For an example of the engineering-essay format this article will follow, see how we engineered AQ-141, the Multifamily Opportunistic Pro Forma Model.
About the Model
AQ-300 is a Pocket-tier retail screener. Two-bucket GLA segmentation, blended NNN recovery, no percentage rent. Built for REPE analysts triaging retail shopping center acquisitions where a full lease-by-lease build is overkill for the first cut.