Posts tagged Retail
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 >
Retail analysts are watching the A&P bankruptcy very closely. A&P, which operates supermarkets under the A&P, Super Fresh, Pathmark, Waldbaum’s, Food Emporium and Food Basics, filed for Chapter 11 bankruptcy on Monday. The corporation currently operates nearly 400 supermarkets across the northeast U.S.
What happens to those hundreds of locations now? How many will go dark and close, be sold to competitors or redevelopers? What impact will all these changes have on the other grocery brands (i.e. Shop Rite, Albertsons, etc) as the available markets come into play?
A&P owners contend that they will reorganize and emerge from bankruptcy as an ongoing concern. But with millions in debt, an expensive workforce and declining profits, the next step is clearly unknown.
Dubai was just a few years ago the buzz-worthy commercial property market on everyone’s lips. A member of the UAE, Dubai became synonymous with upper class through world-famous properties like the Burj Al Arab (the sail-shaped hotel) and the Palm Islands (man-made island chains in the shape of a palm tree). Developers quick to notice a market trend shifted focus to Dubai, with plans to open a mega-retail and entertainment center, the Dubai Global Village – replete with hotels, theater venues, shopping and much more to attract tourists from around the world with continent-specific venues. More >
Brokers are trying every trick in the book to fill up vacant retail space in what is possibly the worst leasing environment in memory. Retailers are still looking to grow, but now they must be extremely cautious with how and where they expand. The secret to success may be as simple as a return to the most fundamental principles in real estate: location, demographics and salesmanship. More >
Retailers will continue to need warehouse space, although some have successfully shifted the need to third parties. More >