Retail News Blog

In a recent article by Bloomberg titled ‘Starbucks Pushing Landlords for 25% Cut in Cafe Rents‘ Starbucks is still trying to cut operating costs. Their business model is changing and they no longer can sustain paying outrageously high rents and still turn a healthy profit. When their profits dipped down 69%, they began laying as [...]

Arriving at a decision on the best strategy for how to successfully navigate the commercial real estate market during these challenging economic times is vexing to many an investor. Do I, or don’t I??? That is the conundrum facing most commercial real estate investors in today’s market. Do I, or don’t I liquidate my portfolio (or at least my non-performing assets)? Do I, or don’t I stand on the sidelines and wait-out these turbulent times? Do I, or don’t’ I get aggressive and take advantage of the decline in property values and the spike in acquisition cap rates? In the text that follows I’ll put forth counsel based not upon the emotions of the times, but rather the forthcoming advice is based upon my years of experience in successfully advising clients in both advancing and declining commercial real estate markets.

“I rarely have a conversation these days where the topic of financing doesn’t arise as a serious concern for my clients. When the economy is robust, and the capital markets are frothy, financing a commercial real estate transaction is a relatively simple matter. However during today’s recessionary times, the commercial capital markets are severely constrained. Not only is the supply of capital tight, but the demand may be near all time highs as well. Depending on which industry source you quote there is between $150 and $200 billion dollars of CMBS debt maturing in 2009 alone. This figure doesn’t include maturing loans from insurance companies, banks and other lenders, which means that many borrowers will be forced to secure financing in a market that presently offers little liquidity.” (”Getting your Property Financed” – Jackson Cooper, SVN – Boise, ID)

The tension was high at the special meeting called by the Colorado Banker’s Association in early December. The bankers were gathering to listen to Dr. Tom Hoenig, President of the Federal Reserve Bank in Kansas City, discuss the current recession and to get his predictions on how long it will last. With the reputation of [...]

Capitalization Rate Analysis
In this article, a capitalization rate for a strip center is analyzed based on (1) market extraction; (2) national survey; and (3) debt coverage/equity dividend analysis. This is an in-depth analysis that shows how a capitalization rate can be derived when little data is available in a market area. This presentation is an [...]

Unless you have been living under a rock for the past year, you know we are in a recession. This recession has impacted everyone from the average Joe to leaders of fortune 500 companies. We know that the recession has hit retailers hard; but how bad is this situation affecting landlords?
Many retailers are searching for [...]

Many auto dealerships are going dark; over 21 in 2008 according to The Oregonian. In 2009 in the Portland Metro area alone we have seen some big names fall to darkness, most notably the Kuni Cadillac dealership that was located in Beaverton. For an auto dealership, the trade area expands beyond the immediate market area. [...]

Way back in November 1996, Oregon voters passed Measure 47. This was a constitutional amendment popularly referred to as the “cut and cap” tax reform act. The “cut” aspect of the legislation referred to a reduction in taxes for the 1997-98 tax year calculated as the lesser of the 1994-95 taxes or 90 percent of the 1995-96 taxes. Bonded debt would be exempt from the calculations. The “cap” aspect of the measure restricted growth in taxes to no greater than 3 percent annually after the 1997-98 tax year.

Recently Forbes published a list of retailers they predict will be closing stores this year. Square Feet had a post about the same story recently, however new details have come to light on a few of these retailers and their exact store closings.

Lane Bryant

150 Stores Closed

Eddie Bauer

27 Stores Closed

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Circuit City lost its battle with the recession early in the game and was forced into chapter 11 even after the initial closing of 155 poorly performing stores across the Midwest. With a lackluster showing of buyers to purchase existing leases and bleeding capital at the seams; no other choices were left but to close [...]