Retail News Blog

The Portland Metro Area (PMA) apartment market was experiencing low vacancy trends (5% and below in most areas) and increasing rental rates from 2005 through late 2008. Since that time; however, the rental market has seen steady decline in rental rates and increases in concessions and vacancy due to the national recession that has seen [...]

Woe is the market analyst who shoots from the hip. There is too much opportunity and rationale these days, or for that matter, at any time, for closer examination of the data, analysis, and conclusions set forth by appraisers reporting the decision-making processes of participants in the real estate market.
Who among us has not been [...]

Now that the reality of the credit market crisis, which really began in July 2007, has fully taken effect, 2009 has been a period of repositioning within the market.  Ironically, the repositioning will be a “return-to-the-old”.  Commercial real estate values are returning to the core fundamentals that always drove the market prior to the rise [...]

PGP Valuation Inc is proud to bring you an Office Market Report for the second quarter of 2009. This four page report talks about the economic market and its effects on the office industry in the San Diego Market. Please visit the Publications section of this website for more newsletters and market reports.

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.

Do you think the collapse of the real estate market place is determinism (by design) or randomness (everything means nothing)? We can not deny that we have experienced a “bubble”. A bubble merely transfers a share of the future demand into the present. It’s linked with dramatic valuations and always debt funded. It is this [...]

According to the most recent Real Capital Analytics® Quarterly Retail Report the national retail asset sales volume at $1.9 billion (1st Quarter 2009) is down more than 74% from the same quarter one year ago. The only regional mall sale transaction in 2009 year-to-date (YTD) on a national level was the Cincinnati Mall which traded [...]

How have the Capital markets affected lending for the manufactured home community industry?
The significant turmoil in the real estate capital markets has resulted in a considerable vacuum in financing opportunities for Manufactured Home Communities. Once a favorite of the now inactive CMBS/Conduit loan industry, the MHC asset class has become increasingly reliant on Fannie Mae, [...]

On April 15th, we posted an article that described some of the financial difficulties that Walgreens is experiencing, and how this company is retooling to ensure long-term sustainability given current economic conditions. The recent struggles with this company along with scarcity of loan dollars and decreased market demand for all triple net properties are causing [...]

Recent events in the financial markets have led real estate investors to question the impact on the value of investment grade real estate. Uncertainty breeds risk and risk in real estate requires higher yields. This will lead to continued declines in values for the first quarter 2009. However, good quality industrial assets should fare well [...]

Capitalization rates reflect the degree of risk associated with an investment. Net operating income divided by the capitalization rate equals value.
Beginning in 2008, and carrying over into 2009, market conditions have led to a noticeable increase in capitalization rates.  These trends are a function of increased risk perceived by investors and more stringent lending conditions [...]

Market Intelligently
Don’t Give it Away for Free
Leverage Zoning
Maximize Unit Efficiency
Image Is Everything
Put Your Best Face Forward
Track Your Performance
Know Your Neighbor
Utilize Security
Storage Income is not Everything

1.) Market Intelligently – Are you maximizing your marketing dollar?Are you thinking outside the box? A variety of marketing tools exist intoday’s self-storage industry. In addition to traditional media types such as [...]

Walgreens is a national, retail drugstore chain that sells prescription and non-prescription drugs and general merchandise. General merchandise includes, among other things, beauty care, personal care, household items, candy, photofinishing, greeting cards, seasonal items and convenience food. Walgreens’ sales of pharmaceutical items account for approximately two-thirds of all sales.
Walgreens was founded in 1901, and as [...]

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 [...]

“VALUATION TECHNIQUES FOR COMMERCIAL REAL ESTATE AMIDST A WORLD OF CHANGE”
Introduction

There is broad sweeping change in the mindset of the World economy caused by the credit crisis, economic downturn and long-term uncertainty, which is having a profound impact on the real estate market. Our job as appraisers is to interpret what is occurring in the [...]

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. [...]

Thanks for popping in and checking out our real estate blog. We are just getting this project off the ground so be patient as the site evolves over the next several months. Our long-term goal is to provide a unique real estate experience where users participate in discussion topics, have access to a broad range [...]