Introduction to Bonside’s New Tool
Bonside, a New York-based tech firm, has secured equity investments from prominent real estate companies Kimco and Nuveen. This investment is part of Bonside’s effort to launch a new underwriting tool designed for retail landlords. The announcement was made by Bonside’s founder and CEO, Neha Govindraj, during a panel at the International Council of Shopping Centers’ (ICSC) annual Las Vegas trade show and conference in 2025.
The Bonside Scorecard
The Bonside Scorecard is a tool that helps retail landlords determine the risk of non-credit tenants by analyzing over 20 metrics, including store profitability, cost of goods sold, and labor. This tool is particularly useful for smaller, non-credit tenants who are looking to expand their physical footprint. The scorecard costs $1,500 and is aimed at fortifying the due diligence process for landlords.
Benefits for Landlords and Tenants
The release of the Bonside Scorecard comes at a time when smaller businesses are looking to grow their physical presence, and landlords are diversifying their tenant mixes. The tool provides a more nuanced approach to evaluating potential tenants, moving away from a blanket approach that may not account for the unique characteristics of each business. By using the Bonside Scorecard, landlords can make more informed decisions about which tenants to accept, and tenants can have a better chance of securing a lease.
Background and Expertise
Neha Govindraj, the founder and CEO of Bonside, brings a unique perspective to the table. With experience in retail financing and brick-and-mortar growth from her time at Bain & Company’s private equity retail practice and as the founder of Glowbar, Govindraj understands the challenges faced by both landlords and tenants. Bonside not only provides underwriting intelligence but also capital to retailers, such as Black Seed Bagels and Go Get ‘Em Tiger, as they expand their store counts.
Industry Trends and Investments
The investment in Bonside by Kimco and Nuveen reflects a larger trend in the retail industry. Developers and landlords are increasingly looking to invest in and partner with smaller, non-credit tenants. This approach can provide a win-win for both parties, as it allows landlords to diversify their tenant mix and provides tenants with the capital and support they need to grow. Companies like Runyon Group, Simon Property Group, and Brookfield Property Partners have already made similar investments in tenants and brands.
Adoption and Future Plans
While the exact number of landlords using the Bonside Scorecard is not disclosed, the company reports that the number is growing each week. Currently, the tool is only available in the U.S., but its potential for expansion is significant. As more landlords tap into the potential of smaller businesses to fill space and merchandise their centers to fit local communities, understanding how to work with this emerging tenant base will become increasingly important.
Conclusion
The launch of the Bonside Scorecard and the investment by Kimco and Nuveen mark an important step forward for retail landlords and non-credit tenants alike. By providing a more nuanced and data-driven approach to underwriting, Bonside is helping to level the playing field for smaller businesses and providing landlords with the tools they need to make informed decisions. As the retail landscape continues to evolve, the importance of innovative solutions like the Bonside Scorecard will only continue to grow.
FAQs
- What is the Bonside Scorecard?
The Bonside Scorecard is a tool designed for retail landlords to evaluate the risk of non-credit tenants by analyzing over 20 key metrics. - How much does the Bonside Scorecard cost?
The Bonside Scorecard costs $1,500 per scorecard. - Who has invested in Bonside?
Kimco and Nuveen have made equity investments in Bonside, with participation from lead investor Floating Point. - What is the goal of the Bonside Scorecard?
The goal of the Bonside Scorecard is to provide a more nuanced approach to underwriting, helping landlords make informed decisions about non-credit tenants and giving these tenants a better chance to secure leases.
