Why Small Shops Beat Big Boxes

Richard Tucker has seen every phase of retail, from enclosed malls to mixed-use, and still chooses the least glamorous corner of the sector: small-bay, necessity-driven strip centers. As CEO of Tucker Development, a 10MM square foot development company, he's now systematizing that playbook into a Midwest portfolio with modest leverage, steady cash, and an exit designed for institutions. In a market obsessed with timing the rate cycle, this is an operator's strategy: buy centers with proven tenancy, fix physical frictions (depth, access, service lanes), keep leverage low (60–65%), hedge rates, and let small rent steps compound at the portfolio level. It's less about shiny anchors and more about durable local habits. Richard and I discuss: Why unanchored strips now. What is WALD and how does it drive resilience and investor returns? Best practices for taking on debt. How 'boring' can yield a 9% current pay. Why taxes matter and what not to look at. If you're underwriting the next two years as an operator, not a speculator, Tucker's checklist is a useful filter for deal flow you can own through volatility. His team spends more time on downside than upside and builds something a bigger buyer can actually absorb. That discipline is scarce. Tune in to hear how Richard separates cosmetic "retail" from real, necessity-based demand and why "good real estate with good business plans always wins out." *** In this series, I cut through the noise to examine how shifting macroeconomic forces and rising geopolitical risk are reshaping real estate investing. With insights from economists, academics, and seasoned professionals, this show helps investors respond to market uncertainty with clarity, discipline, and a focus on downside protection. Subscribe to my free newsletter for timely updates, insights, and tools to help you navigate today's volatile real estate landscape. You'll get: Straight talk on what happens when confidence meets correction - no hype, no spin, no fluff.Real implications of macro trends for investors and sponsors with actionable guidance.Insights from real estate professionals who've been through it all before. Visit GowerCrowd.com/subscribe Email: [e-mail] Call: 213-761-1000