Apers for Retail
Retail underwriting that models the relationships, not just the rent roll.
Apers is the AI system that connects anchor economics, co-tenancy clauses, and percentage rent — so you price the deal the way the tenants actually interact.
The anchor's lease isn't the question
You're evaluating a 320,000 SF grocery-anchored shopping center. The anchor — a national grocer at $12/SF on a lease signed in 2015 — represents 45% of the GLA and 28% of the revenue. They're at market or slightly below. The real question isn't the anchor's rent — it's what happens to the 22 shop tenants if the anchor doesn't renew. Six of them have co-tenancy clauses triggered by the anchor's departure.
When an anchor leaves, co-tenancy provisions activate. Three shop tenants get rent reductions to percentage-only. Two can terminate. One gets 60 days to exercise an option. The modeling isn't one lease rolling — it's a cascade of interconnected provisions that can collapse 30% of the center's NOI in 90 days. Your Excel model has the anchor's lease on one tab. The co-tenancy triggers are in your head.
In retail, percentage rent isn't a bonus — for some tenants, it's the difference between a 6% and 7% cap rate. But modeling percentage rent requires tenant sales data, breakpoint calculations, and assumptions about retail sales growth by category. Most models include a flat line item. Apers models it by tenant, by category, by breakpoint.
Retail underwriting is relationship underwriting — the tenants depend on each other, the anchor drives the traffic, the co-tenancy clauses encode that dependency in legal terms. The model that captures these relationships is the model that prices the deal correctly.
What changes with Apers
Model the tenant that drives the center
Anchor lease analysis: below-market rent quantification, renewal scenario at market, departure scenario with re-tenanting timeline and cost. The anchor isn't just a tenant — it's the center's demand generator. Apers models anchor economics separately because the center's value depends on it.
The clauses that cascade
Co-tenancy provision modeling: which tenants trigger, what remedies activate — rent reduction, percentage-only, termination — and the timeline. See the full cascade from one anchor departure to building-wide NOI impact.
Revenue above the breakpoint
Tenant-level percentage rent: natural breakpoints, sales volume assumptions by retail category, percentage rent contribution to total revenue. Not a flat line item — actual tenant economics modeled by tenant, by category, by breakpoint.
Lease abstracts with co-tenancy extracted
Upload lease abstracts — Apers extracts base rent, escalations, options, and co-tenancy provisions. The clauses that are buried in paragraph 14(b) of the lease become structured data in the model.
A deal, start to finish
A 320,000 SF grocery-anchored shopping center. National grocer anchor at 45% of GLA. 22 shop tenants, 6 with co-tenancy clauses. $44M acquisition.
Upload lease abstracts
Lease abstracts for all 23 tenants and the T-12. Apers extracts base rent, escalations, percentage rent terms, co-tenancy provisions, and renewal options for every tenant — including the clauses buried deep in the lease documents.
Tenant-by-tenant model built
Each tenant modeled individually: base rent with escalations, CAM/tax/insurance recoveries, percentage rent with breakpoints, and co-tenancy provisions linked to anchor status. Not a blended rent roll — actual lease-level economics.
Anchor scenarios modeled
Anchor renews at market rent (+$3/SF) — shop tenants benefit from continued traffic, co-tenancy stays inactive. Anchor departs with 18-month re-tenanting timeline — 6 co-tenancy clauses activate, NOI cascade quantified quarter by quarter.
Co-tenancy cascade quantified
3 tenants drop to percentage-rent-only ($180K annual revenue loss). 2 tenants exercise termination options ($95K loss plus TI/LC to re-tenant). 1 tenant's option window passes without exercise. Total annual NOI impact: $275K — the model shows the timeline and recovery path.
IC-ready output
Excel model with anchor scenario analysis, co-tenancy cascade, percentage rent by tenant, CAM reconciliation, debt sizing, and return analysis. Every co-tenancy trigger traces to a lease abstract page number.
Models built for retail
A growing collection for every retail format — from grocery-anchored centers to single-tenant net lease.
Pocket Model: Retail Shopping Center
Single-sheet screener with anchor vs shop space split. Rapid assessment on one page.
Anchored Retail Shopping Center
Pro forma for grocery or big-box anchored centers with tenant segmentation and percentage rent tracking.
Retail Core Pro Forma
Stabilized retail with percentage rent, co-tenancy clause analysis, CAM reconciliation, and long-term rollover scheduling.
Retail Value-Add Pro Forma
Repositioning and re-tenanting strategies including outparcel development, remerchandising, and vacancy lease-up.
Single-Tenant NNN Lease Model
Simplified model for credit tenant triple-net lease retail properties with lease term valuation.
Frequently Asked Questions
Does Apers model co-tenancy clauses and their cascading effects?
Yes. Apers models co-tenancy provisions at the tenant level — rent reductions, termination options, and exercise windows triggered by anchor departure. The model shows the cascading NOI impact when an anchor leaves and multiple co-tenancy clauses activate simultaneously.
How does Apers handle percentage rent calculations?
Apers models percentage rent by tenant, by sales category, and by breakpoint. Each tenant has its own sales growth assumption and breakpoint threshold. The model separates base rent from percentage rent so you can see the real cap rate impact — not a flat line item estimate.
Can Apers underwrite grocery-anchored and power center deals?
Yes. The retail models handle anchor economics, shop tenant diversification, CAM reconciliation, and tenant credit profiles. Whether it's a grocery-anchored neighborhood center or a big-box power center, each tenant type gets its own lease structure and renewal assumptions.
Does Apers model NNN lease structures with CAM reconciliation?
Yes. Apers models triple-net leases with base rent escalations, CAM pass-throughs, real estate tax recovery, and insurance reimbursement by tenant. The reconciliation shows recoverable vs. non-recoverable expenses and the landlord's actual net position.