Retail News Blog

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 [...]

Establishment of Senior Leadership Role Highlights Company’s Dedication to Expanding Services for Government, Institutional and Corporate Accounts
CARLSBAD, Calif. – PGP Valuation Inc., the industry-leading appraisal services firm with offices worldwide, has announced that Lance W. Doré, MAI, FRICS, has been appointed to the newly created position of Vice President, Client Services. In his new corporate [...]

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.

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 [...]

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 [...]

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 [...]

“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 [...]

PGP Valuation Inc is proud to bring you a Retail Newsletter for the first quarter of 2009. This four page newsletter talks about the economic market and its effects on the retail industry in the northwest and nationally.

W. Grant Noring, Jeff Grose, MAI & Steven L. Waugh presented today at the Multnomah Athletic Club in Portland Oregon at the CCIM meeting. Below is the presentation. A copy can be downloaded by going to the Publications section of this site or you can view the presentation by clicking on “Continue Reading” below.

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

[...]

Consumer confidence is at a 40 year low of 37.7 in January of 2009 compared to 87.3 in January of 2007. A little background on consumer confidence: the index started in 1967 and was at 100 in 1985. What does this all mean for the retail industry? Consumer confidence is intrinsically tied to retail. It’s [...]