Posts tagged Retail
With an every expanding global marketplace, retailers are faced with the daunting task of embarking on network expansion beyond the U.S. borders. Whether it is into Canada, Mexico or China, there are five key cornerstones retailers need to understand in order to meet with a successful international presence. Each cornerstone is linked with the next, yet each possesses its own challenges. More >
As is typical, the industrial segment will lead the industry out of the real estate doldrums. The asset class is fairly less sophisticated then multi-family and office and retail remains a conundrum.
B-class assets and incubator vintage infill will be the first to lease as service companies and ancillary support companies will be buoyed by the improving economy.
Sam Zell, appearing on CNBC’s Squawk Box earlier this month, reiterated several interesting points about current market conditions and trends in the commercial real estate sector:
- We haven’t built anything in the U.S. since mid-2007, and except for some apartments we are not going to build anything significant for another two to three years.
- Existing space is being filled at rates 20-30% lower than 2007.
- Commercial real estate is not the next shoe to drop – you don’t have destruction without oversupply and we don’t have oversupply.
- There is a direct correlation between filling of buildings and the end of pretend and extend – until now banks have been able More >
Historically, developers (landlords) would react to vacancy in their shopping centers by leasing space without understanding how the surrounding market area may have changed, and which retailers to properly target for the development. Developers who are responsible for managing properties should be more proactive with their developments in order to assess how the market area has changed over time. Lifecycle of markets don’t change overnight but do change over time as the residential base grows older, More >
Trophies vs. Trash – it’s just one way to explain what is happening in today’s commercial real estate market. The Trophies are those main-and-main, big city stabilized assets that are the envy of every serious institutional owner. And because the number of those assets is finite and the capital chasing them seemingly endless, prices–believe it or not–are going up and cap rats are being compressed.
The sales of those few Trophy assets are also the ones that major publications report on when they declare that the worst is over. The recent sale of the Pritzker/Hyatt Office Building in downtown Chicago is an example of a trophy selling to California-based The More >