Interview With Joanna Rotonde Manfro: Pioneering Success in CRE

What motivated you to pursue a career in CRE, and how did you begin your journey?

Real estate has been in my family for three generations. My grandfather was in excavation and worked on major developments in the outer boroughs of NYC in the 60s and 70s; my father is a hotel owner and developer, and my mother is a commercial broker. I feel as if I was born and bred into the industry; however, that’s not without the interest and drive to succeed. Coupled with being outgoing and gregarious, it’s an industry I’ve found success in and genuinely love.

I started my career working in law firms in high school, preparing closing documents and filling out HUD statements, and cutting checks. Before this was all digitized. I learned a tremendous amount by reading those documents. I was able to familiarize myself with the fundamentals of the business. After I graduated high school, I earned my real estate license and started as an assistant to a broker. Halfway through college, I gained some recognition in the retail sector and was hired at 21 to work for my first REIT (UBP) in leasing and acquisitions. UBP focused primarily on one product type and region – grocery-anchored centers in the metro NY area. Here, I pushed myself to participate in as many C-suite and senior-level meetings as possible to learn the industry from the inside out. During my first year, I was also on the road a lot, and I mapped out each market, physically driving to each center. Nothing compares to driving and visiting each of the assets in person, understanding road patterns, the shopping centers’ ingress/egress, and the overall vibe of the center. I pushed myself to learn everything I could about the market and the players.

Although this is how my career started, I find myself still utilizing the same approach, with the addition of technology making information more accessible.

What made you choose to work at Matthews™, and what do you believe makes the company stand out from other players in the industry?

I had the privilege to look at a wide variety of brokerage firms. Matthews™ offered the opportunity to be a part of something different. The company is focused on breaking the mold of traditional real estate while allowing agents to grow their individual visions. The commitment to growth and breeding new hungry talent is something I was drawn to.

Matthews™ has an excellent track record across the country. I’m very excited to spearhead the growth in the Northeast in the Shopping Center and multitenant retail space. Matthews™ has the foundation and national presence to compete with the best of them.

A good portion of my business on the principal side has been to work collaboratively with industry professionals on and off the market. I’m looking to do the same on the brokerage side. We must be creative and different in this market and adapt to changing environments, not being held down by a system and process that has been in place for decades.

What valuable advice would you offer to new retail agents who are just starting their careers? 

• Get out on the road, tour properties, meet people, and shake hands.
• Be in the office, listen to senior leaders, and learn how they operate.
• Ask to be invited to meetings where you can learn something and leverage it.
• Early in your career, listen more and talk less. This will help you learn about the many different perspectives people have.
• Don’t be afraid to speak when you have something to add value to the conversation or ask meaningful questions.
• Remember, this is still a relationship business.

How is the Northeast real estate market performing, particularly in the context of the multitenant retail sector? 

Despite the limited supply, the demand for quality real estate remains — Often called “good dirt.” Transaction opportunities continue to flow if the property boasts a strategic location and is accompanied by a well-curated tenant lineup OR has the potential for value enhancement.

In recent years, the evolving retail landscape, including the rise of e-commerce, has prompted some adjustments within the grocery-anchored retail sector. However, many grocery chains have embraced online shopping and delivery services, enabling them to remain competitive and continue driving foot traffic to their physical locations. Grocery-anchored retail centers tend to perform well due to their ability to capture consistent foot traffic, offer essential goods, and create a hub for diverse retail experiences. That said, we continue to see alternative uses driven to necessity retail centers. Depending on their demographics, the site could be densified with residential on top of retail or lifestyle tenants (Pottery Barn/Williams Sonoma), or the contrary, in less dense areas, you will see industrial logistics and self-storage.

What are your predictions for the multitenant retail real estate sector in the next 5 to 10 years?

Institutions have and will remain active in taking over generational assets in the premier markets, making it harder for family offices and private clients to compete with their cost of capital and tenants. Institutions can roll out a dozen stores for best-in-class tenants, with good funding throughout their portfolio. Furthermore, I think there will be fewer transactions in the future in the high-cap market ($50M+) because many institutions are long-term owners.

What are the top retail/shopping center trends to keep an eye on for the rest of 2023?

A shift towards experience-based retail is evident. The Barbie movie release over the summer is a prime example. The experience centered around the movie brought people back to watch it numerous times. Retailers are moving away from the confines of traditional malls as the industry seeks to offer immersive and engaging shopping experiences. Additionally, the continued emergence of industrial-flex spaces marks another trend. Various product types are merging into adaptable, multi-purpose spaces, but the key is still location. Lastly, a noticeable urban-to-suburban migration is in progress, driven by robust suburban infrastructure; however, some suburbs are struggling to keep pace with escalating demands.

What is your most effective tip for building and nurturing relationships with clients?

Always call a client with something that benefits them. Creating meaningful and mutually beneficial connections will come to your advantage down the road. Try to be useful, authentic, and build genuine connections, and the deals will come.

Can you share what has been your favorite transaction in your career and why? 

For many different reasons, the first one that comes to mind is my first $100M+ transaction — the Fairfield portfolio. I met with owners during my first year working for a REIT after a cold call when I was 22. I followed up with them for almost 8 years, keeping in touch and discussing market transactions that were relevant to them. I  would send them a handwritten letter at least once a year. One day I made that call; they met me in person and were ready to sell. They brought it to a few credible buyers, including my company at the time, Regency Centers. We ultimately won the bid not because of price but because we were all in line with the pricing. The patriarch of the family made a point to let my superiors know one of the main reasons we were in the room and won because of the relationship we built. This transaction taught me that keeping a genuine relationship pays off. Being consistent and staying top of mind is crucial.

When you were previously on the acquisition side of the transaction, what were some key components you looked out for?

When buying for a publicly traded REIT, you’re primarily focused on acquiring along the guidelines of the existing portfolio while looking to move the needle in some way for the portfolio averages. Whether it be NOI, demographics, and growth, I was also focused on properties that could add value in a meaningful way and increase the overall portfolio averages. With a good combination of high-quality demographics (density, income, population growth, education), credit tenants, and sales, coupled with rent growth and health ratios, a lot went into finding those unicorns.

Why did you transition from acquisition to the brokerage side of the business?

After 15 years of building a rolodex of owners, developers, institutions, and tenants, and a wealth of knowledge with each market I worked, I felt like it was a disservice to myself to work with only one buyer, so I decided to move to brokerage to help represent a larger group. Matthews offered me the latitude to start something new and fresh.