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Wednesday April 30th
Bisnow: NYC Retail Real Estate Summit
New York, NY

With the unforgiving polar vortex behind us, and consistent upticks in consumer demand dispelling market anxieties stemming from the Fed’s tapering policies, there is only one direction retail is heading. Up! The consumer is back, and retail is king. Come hear about it from the industry leaders themselves at Bisnow’s 4th Annual NY Retail Summit.

Get 20% off by using this discount code at checkout: retailmls2014

Click here to register!

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May 18-20, 2014
ICSC RECon Las Vegas
Las Vegas Convention Center

RECon is the global convention for the shopping center industry and provides networking, deal making and educational opportunities for retail real estate professionals from around the world. With over 34,000 attendees and 1,000 exhibitors it is the largest industry convention, making it an unparalleled opportunity to do a year’s worth of business in just three days! If you are looking to meet retailers to discuss new or existing leases in your centers, view the latest industry products and services that are critical to your business, attend educational sessions or find the next deal, then you need to attend RECon.

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Wednesday June 11th
ICSC: New York Program and Networking Breakfast
New York, NY

Join us and gain valuable insight into the dynamic retail environment in the outer boroughs of New York City.

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Thursday July 17th, 3-9pm
Social Retail Summit #7
Dumbo Spot, New York

Social retail is the new approach to customer relations developed by next generation omnichannel retail brands, from online community to offline sales.

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Featured Article
Retail Deal at 225 Fifth Avenue Draws $78M

City records indicate that Los Angeles-based real estate investment firm CIM Group has closed on its purchase of the retail portion of 225 Fifth Avenue in the Flatiron District for over $78 million. The deed lists the seller as Chicago-based Ceres Real Estate, a firm that specializes in repositioning distressed assets.

The retail property consists of two parcels totaling 40,079 square feet, and is currently 100 percent leased to several long-term tenants including JP Morgan Chase, 24 Hour Fitness, Verizon Wireless, and United States Postal Service.

The space features 15-foot ceilings on the ground floor and approximately 200 feet of pedestrian frontage along Fifth Avenue, including two prime corner retail spaces. Above the retail property sits a 12-story, 192-unit luxury residential condominium building, The Grand Madison. The property overlooks the north end of Madison Square Park.

Posted on January 31, 2013

Featured Article
‘The Plant’ Sold for $205 Million

The Plant, also referred to as ‘The Big Value Center,’located on Curtner Avenue and Monterey Road in San Jose, has sold to a division of Cole Real Estate Investments for $205 million, signifying that investors are still ‘hot’ on Silicon Valley retail space. Cole will fund this purchase with their proceeds from their initial public offering, in addition to borrowings from their revolving bank credit facility or a mortgage loan. The seller for the deal is WPV San Jose LLC, an entity of Vornado Realty Trust.

The shopping center consists of 650,500 SF, one of the largest shopping centers in the area. It occupies a 55-acre former brownfield site, formerly a General Electric plant. Some of the retailers include Target, The Home Depot, Best Buy, Ross, and more! That said, because some of the retailers own their own space, Cole Credit Property Trust IV is buying 510,000 SF.

Posted on January 30, 2013

Featured Article
NRF: 2013 Retail Sales Predictions

On Monday, NRF revealed predictions that there will be slower growth in 2013 as consumers metabolize tax increases and start spending only as the year goes on. The Washington-based trade association expects retail sales growth of 3.4% over the course of the year, slightly above the 3.3% in 2010, but below the increase in 2011 and 2012. The 3.4% increase would sum up retail sales to $3.11 trillion, an increase from $3.01 trillion last year.

According to Matthew Shay, president and chief executive officer of NRF, online sales growth (all nonstore transactions) would be up by 9%-12%. He also explained that the beginning of 2013 would look like the end of 2012, when consumers would be hesitant to spend money because of the uncertainty of Congress and Obama trying to figure out ways to reduce costs and enhance revenues. “Many people will be shopping for price more often, and there may be some trading down and reshuffling because of changes that many people are seeing in their paychecks,” said Shay.

Among these changes that consumers are encountering are tax increases. Following this, growth will likely expand after a difficult first quarter, as the tax hit on paychecks is digested. And, as Shay noted, “The recession’s been over a long time. The problems in the last two years are largely homemade.”

Posted on January 30, 2013

Featured Article
Kimco Sells Dayton Retail Centers

Kimco Realty has cashed out of $15.3 million worth of properties in the Dayton, Ohio area. The company let go of four of its retail centers to a private equity firm.

Kimco sold a 116,000-square-foot property at 201 91 E. Alex Bell Road for $11.5 million to Garrison Investment Group, an asset-based investor in New York City. Additionally, Garrison bought the Salem Plaza retail center at 5113 Salem Ave. for $2.5 million, as well as the Shiloh Springs shoppingn center at 5111 Salem Ave. for $1.3 million. County records indicate that the company also bought a 6,000-square-foot outparcel at 261 Springboro Parkway for $125,000.

“The Dayton assets are part of a larger portfolio that we acquired from Kimco,” said Lawrence Bizjak, managing director at Garrison. “The properties we bought are ones we hope to bring some leases to in order to improve the occupancy,” he said.

The deal on Alex Bell is for a portion of Cross Pointe Center, which includes major tenants like Bed Bath and Beyond, Home to Home, and Michael’s Salon and Spa.

Posted on January 29, 2013

Featured Article
Valentine’s Day Sales on the Rise

Sales this Valentine’s Day are expected to increase about 3.2% from last year. According to a report by market research firm IBISWorld, consumers are going to spend slightly more on their Valentine’s Day merchandise. Specifically, the report predicts that the average amount of spending per person will be $134.08, as opposed to last year, $133.99. In turn, this should cause total revenue for the holiday to grow to about $20.8 billion.

“Although overall spending will increase slightly, consumers are still watching their wallets, and spending on expensive items will suffer as a consequence. Due to these trends, Valentine’s Day purchases are expected to trend toward conventional gifts, giving candy and flowers an edge this year,” said Lauren Setar, IBISWorld industry analyst.

Looking deeper into the report, spending on greeting cards is expected to increase 0.4% from 2012, to a total of $866 million and candy sales are expected to increase by 4.3%, totally $2.89 billion. Jewelry, flower, and dining sales are expected to increase as well, by 2.2%, 5.7%, and 2.9%, respectively. Finally, clothing and lingerie sales are predicted to increase by 1.8% to $1.26 billion.

Posted on January 28, 2013

Featured Article
Guest Blogger Michael Stoler: Brick & Mortar Retailers Serious Endangered By Mobile Show Rooming

More and more “Brick & Mortar” traditional retailers are worried about the effect of mobile show rooming on its sales. Media Post reported that show rooming as in visiting an actual retailer in its physical location is a very real threat, as consumers now admit utilizing this option in Harris Interactive, latest poll on holiday shopping habits.

In the Harris Poll held between November 27 and November 29th, the pollster found that 43 percent have tried a product in a store and then choose to buy online.

The main victims of show rooming (in store look-ups), consumers who have investigated an item and then bought it online, 24 percent say they do so most frequently at “Best Buy”. More than 22 percent of show roomers visit Wal-Mart. Nine percent visit Target with 4 percent at Home Depot and Lowe at 3 percent. With fewer and fewer book stores, the survey revealed that 3 percent of the show roomers visit Barnes & Noble.

Posted on January 28, 2013

Featured Article
The Real Deal: Adds National Listings
url, the New York City-based multiple listings service that focuses exclusively on retail, has expanded nationwide, the company’s founder told The Real Deal. The expansion was motivated by user feedback and the realization that national firms such as Vornado Realty Trust and Cushman & Wakefield would list properties across the U.S., founder Benjamin Zises said.

“We felt like, why wait if we can start servicing them sooner and stake our claim throughout the country as soon as possible?” said Zises, himself a former broker.

RetailMLS allows users to upload retail listings, as well as search for properties based on specific criteria, such as minimum street frontage, number of parking spaces, level of pedestrian traffic and features like kitchens.

Posted on January 25, 2013

Featured Article
Las Vegas Shopping Centers Sell for $288M
Centennial center

Real estate development company Territory Inc. sold a controlling stake in six Las Vegas-area shopping centers in a deal valued at $288 million, including $149 million of new debt.

Run by Terri Sturm, Territory Inc. sold a 78% stake to Inland Diversified Real Estate. The shopping centers include Centennial Center, an 857,000-square-foot property about 12 miles northwest of the Strip, as well as five other smaller centers totaling around 840,000 square feet.

The deal reflects a growing investor appetite for commercial property in weak markets. Until recently, most investors were shunning commercial property in smaller cities, especially those hit hard by the housing crisis. However, as the U.S. economy has added jobs and the housing market has begun recovering, property in those markets has become more attractive for investors looking for better returns.

Posted on January 24, 2013

Featured Listing
Featured Article
Mall and Strip Center Vacancy Rates Down in Q4
Vacant mall

Reis reported that the vacancy rate for regional malls declined to 8.6% in Q4 from 8.7% in Q3. This is down from a cycle peak of 9.4% in Q3 2011, which was a 12-year high. The mall vacancy rate has now declined for the five consecutive quarters since that peak.

Similarly, strip centers fell back one-tenth of a percentage point from 10.8% in Q3 to 10.7% in Q4. The average asking rent at malls increased by 0.2% in Q4 o $39.31/square foot yearly, up from the previous quarter. This is the sixth straight quarterly increase. At strip centers, the average asking rent rose by 0.2% to $19.08/square foot yearly, the fourth consecutive quarterly increase.

Reis Senior Economist Ryan Severino commented:

[Strip mall] Vacancy declined by only 10 bps during the fourth quarter. This was an improvement versus the third quarter when the vacancy rate was unchanged. On a year-over-year basis, the vacancy rate declined by only 30 bps. During the quarter absorption exceeded construction by a sufficient enough margin to lower the vacancy rate, but only marginally. With only 915,000 square feet delivered, more robust demand would cause vacancy to compress expeditiously. But even with so few completions occurring, the economy is not generating enough demand for space.

Posted on January 22, 2013

Featured Article
Guest Blogger Michael Stoler: Foodservice More Profitable for Convenience Stores and Drug and Healthy & Beauty Aid Retailers
Screen Shot 2013-01-22 at 10.59.05 AM

More and more convenience stores and retail drug and health & beauty aid retailers (which include Walgreen’s, Duane Reade, CVS and Rite Aid) are increasing the floor space within the premises to accommodate foodservice.

In a recent survey from Technomic, reported that foodservice is a key area of opportunity for these retail establishments.

With revenues from tobacco products falling, foodservice sales are increasingly becoming convenience stores’ most profitable category.

“Convenience stores have shifted their focus to provide a wider variety of fresh, high-quality food offerings to help gain a greater share of stomach and compete with restaurants,” said Technomic Director of Research and Consulting Services Tim Powell. “At the same time, there seems to be significant room for convenience-store operators to generate increased foodservice sales by translating existing traffic into purchases.

Posted on January 22, 2013

Featured Article
Walmart’s Bill Simon: Retailers to Revive the U.S. Economy

This past week there were several prominent speakers at NRF’s retail convention, including Bill Simon, the president and CEO of Walmart U.S. With his keynote speech, “A Job to Do: Retail’s Role in an American Renewal”, he delve into the problems with the U.S. economy and retailers’ role in the recovery process. He presented a three-tiered plan, firmly stating that retailers should stop waiting for politicians to change the face of the economy, and instead should take matters into their own hands.

“The beauty of the private sector is we don’t have to win an election, convince Congress to pass a bill to do what we think we need to do. We can just move forward doing what we know is right and what we are capable of doing and that is growing our businesses. The time for waiting is over. It is time for us to move forward, “ said Simon. He believes that the retail industry has the power and the responsibility to lead on the issue of jobs and economic growth.

Posted on January 18, 2013

Featured Article
Jon Mills

Jon Mills’ career in commercial real estate began more than 40 years ago in New York City. He has completed transactions totaling over 8 million square feet and aggregating in excess of One Billion Dollars throughout his career. He has represented some of the country’s leading retailers on site selection and leasing in the Middle [...]

Posted on January 18, 2013

Featured Article
Garden State Plaza Begins $130M Renovation
Garden State Plaza

The Garden State Plaza started work on Monday on a $130 million project in order to replace a parking deck and to remodel. The mall, located in Paramus, New Jersey, hopes to attract upscale stores after completing construction, which will add 50,000 square feet of retail space. The additional space will allow for around 20 more stores, and is scheduled to open in the spring of 2014.

The new stores will be grouped on two floors adjacent to the new deck. Including common areas and back-room space for the stores, the project will add around 80,000 square feet of space inside the mall. New stores will bring the mall’s store count close to 300.

Approved by the borough of Paramus three years ago, the project involves tearing down the four-level parking deck adjacent to Neiman Marcus and replacing it with a five-level deck with a speed ramp. The new deck will have 1,800 spaces, which is 300 more than the existing one.

Posted on January 17, 2013

Featured Article
PREIT Sells Paxton Towne Centre for $76.8 Million

Pennsylvania Real Estate Investment Trust (PREIT) recently sold Paxton Towne Centre, a shopping center located in Lower Paxton Township, for $76.8 million to Rubenstein Real Estate Co. The retail center houses tenants such as Target, Costco, Kohl’s, and Weis Markets, H.H. Gregg, Michael’s, Books-A-Million, Babirs “R” Us, and Bed, Bath & Beyond. Paxton Towne Center is comprised of about 717,000 SF. According to the US Securities and Exchange Commission, PREIT developed the shopping center for $55 million in 2001, and it had a book value of $57.9 million as of the end of September.

According to PREIT, the property locked down a mortgage loan with an outstanding balance of $50 million. PREIT used $50 of their proceeds to pay this balance, showing $24.9 in profits after closing costs, but before some post-closing obligations. The company plans on putting the rest of the proceeds towards other debts and additional corporate obligations.

Posted on January 16, 2013

Featured Article
Largest NYC Sale in 2012 Goes to Unlikely Property
Kings Plaza

The largest sale in New York City in 2012 was a bit of a shocker. Instead of a more likely candidate such as Manhattan office, a little-known shopping center in eastern Brooklyn called Kings Plaza sold for $751 million. The 1.1 million-square-foot property was sold to California-based Macerich by Vornado Realty Trust, making it the biggest property sale of 2012.

The sale, which closed in December, was the biggest outright, single-trade sale in Brooklyn ever. Arthur Draznin, an executive managing director with Newmark Grubb Knight Frank, said,“There is an additional stone in the foundation of a stronger Brooklyn. Williamsburg is the hottest market of the five boroughs, and lots of other areas are continuing to build up, trading at levels never seen before and rents that are competing with Manhattan rents. That’s why you see Brooklyn being so strong.”

The second largest deal was also retail-related; a retail condominium at 666 Fifth Ave. was bought by Vornado for $707 million from Carlyle Group and Crown Acquisitions. Only 11 office building sales made it to last year’s top 25, which is down from 16 in 2011. The rest of the deals were retail and apartment buildings and one hotel coming in at number ten. In 2011, the Kings Plaza deal would have ranked fourth, signaling that the size of the deals is also changing.

Posted on January 15, 2013

Featured Article
Supervalu and Cereberus Make $3.3 Billion Deal for 877 Supermarkets

Supervalu, the leading organization for the grocery retailing industry, recently sold five of their chains to an investor group led by Cerberus Capital Management LP. The deal totaled 877 supermarkets for $3.3 billion, and will hopefully reduce Supervalu’s debt dramatically. They have been losing customers to rivals such as Kroger Co and Wal-Mart Stores Inc.

This large deal includes grocers Albertsons, Acme, Jewel-Ocsco, Shaw’s, and Star Market. The finances of the deal are such that the buyer is spending $100 million in cash, and taking on $3.2 billion of their debt. Part of the deal includes that Cereberus will offer up to 30% of Supervalu’s stock at $4 per share. After the deal, about 47% of Supervalu’s revenue will come from the grocery distribution business, with about 25% of that coming from Save-A-Lot.

By the end of March, the deal should be closed and Supevalu’s business will continue to own a food wholesaler serving 1,950 stores, Save-A-Lot, Cub, Farm Fresh, Shoppers, Shop ‘n Save, and Hornbacher’s.

Posted on January 14, 2013

Featured Article
Guest Blogger Michael Stoler: New Entrants to the Top Retail Brands in the U.S.

Its official, Walmart, the world’s highest volume retailer continues to rank in number one position as the most valuable U.S. retail brands in 2012.

Interbrand, the world’s largest branding consultancies recently released its report on the most valuable U.S. retail brands in 2012. The firm noted that though branding continues to be uneven, it’s great to see growth. While the total branding value of this year’s top 50 U.S. retail brands is flat, many brands increased in value by impressive double digits. The average growth by brand was a healthy 4 percent.

The two most valuable retail brands Walmart and Target continue to dominate the retail landscape, but were nearly flat in their growth with Walmart down 2 percent and Target just up 1 percent.

Online retail spending continues to grow from almost 7% to 9% of all U.S. Retail sales.

Posted on January 14, 2013

Featured Article
NRF’s Retail Convention 2013

NRF’s ‘Retail’s BIG Show’ is happening this week in New York City. As the industry’s largest convention for 102 years, NRF is gearing up for a great showing this year. There are expected to be over 27,000 store executives, suppliers, techies, consultants, and prognosticators at Jacob’s K Javits Convention Center for the annual convention. The ‘BIG Show’ will consist of demos, discussions, and case studies on the latest technologies, sustainability, going global, and brick-and-mortar and online convergence.

The convention looks to help retailers in their buying, planning, and strategizing for their businesses. It is also a great opportunity to network and learn all about other companies. There will be several different presenters this year, including Terry J. Lundgren, Howard Schultz, Bill Simon, Kip Tindell, Walter Robb, and Mindy Grossman, all of which are CEO’s of Macy’s, Starbucks, Wal-Mart, The Container Store, Whole Food, and HSN Inc., respectively.

At this year’s convention, there are going to be several new things happening, including more EXPO, networking receptions, keynotes, and specialty programming. There are going to be over 450 solution providers showing off new technology and bringing retailers new solutions and networking opportunities. As part of the EXPO portion (all FREE), there are going to be stage sessions, networking receptions, and BIG ideas sessions.

Posted on January 13, 2013

Featured Article
Subway on the Rise to Largest Chain in New York City

Dunkin’ Donuts has been the largest retailer in New York City for around five years. That said, Subway is gaining on the coffee shop. Just two years ago, Dunkin’ Donuts had 77 more stores than Subway, with 466 locations. This past year, though, Subway is creeping up on them, with just a 30 store gap. Dunkin’ Donuts now has 484 stores, and Subway now has 454 stores within the five boroughs.

“It’s hard to believe that Dunkin’ Donuts is on the verge of having 500 stores in New York City,” said Jonathan Bowles, executive director of the Center for an Urban Future, the organization who conducted the annual ranking. Center for an Urban Future is a public policy organization that looks to improve the overall health of New York City, and targets low-income and working-class neighborhoods and trying to improve the city in the long-term.

The reason for Subway’s large expansion could be largely due to the fact that other fast food chains, such as Burger King, McDonald’s, and Wendy’s have slowed down growth because of the trend towards healthier food. That has allowed Subway to expand and capitalize on their healthier fast food.

Posted on January 11, 2013

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