Our property portfolio is composed of three discrete categories; retail, residential and office. We look for opportunities to add value for investors by acquiring assets that are positioned to command top rates in areas that are experiencing robust economic growth. Our philosophy is centered on the principle that quality will always be in demand, which is why we strive to match exceptional properties with up and coming areas.
Herndon’s portfolio of retail properties is composed of shopping centers anchored by big box stores in long term leases. Typically, these stores offer product lines such as home improvement or groceries, which are less vulnerable to disruption by online players. These credit tenants provide the stability necessary to ensure consistent revenues through economic fluctuations while also generating traffic to help support smaller tenants in adjoining spaces.
Our retail portfolio is weighted in favor of tenants serving a broad swathe of the socioeconomic spectrum, but we do have several centers dedicated to serving the luxury segment. These trophy assets are located in the heart of longstanding enclaves of wealth, and cater to a clientele that demands only the finest, in-person service.
Looking to the longer term, Herndon also examines the potential value of the underlying land when acquiring properties. If unforeseen shifts in consumer shopping patterns arise, we are then in a position to profitably redevelop the parcel for residential or mixed-use purposes.
In our quest to offer a balanced portfolio to our investors, Herndon has made considerable investments in residential real estate. Millennials and Generation Z are waiting longer to settle down, which in turn has created valuable opportunities in the rental market. The demand for apartments in urban settings has increased dramatically, and Herndon has strategically invested in complexes in prime locations around the globe.
Another area seeing strong growth are lifestyle properties. These offer residents significant amenities- including easy access to fine dining, on-site gyms and beachfront settings.
Included in this group are a subset of assets acquired to service the burgeoning vacation rental market. Houses, villas and even estates are in high demand by travelers seeking more space as well as a “home away from home” experience while on holiday.
Herndon’s commercial real estate group encompasses assets from some of largest office towers in Europe to modest-sized properties in the heart of desirable cities. Guided by our commitment to quality, these properties represent some of the finest trophy assets in their respective markets. The view is better from the top it’s said, and our ownership of the tallest buildings in some European countries as enabled us to attract some of the leading companies in the world as our tenants.