This is my first post in a very long time. The only reason I am posting today is because I didn’t really have to do anything to put this post up. The following analysis is from an email I just received breaking down a recently listed retail center. Needless to say, the property is way [...]
Mar
30
Phoenix Retail Sucking Wind
The Phoenix Business Journal published a not-so-surprising article this past Friday about the state of retail shopping centers in the Phoenix MSA. The article paints a dismal picture for the state of retail in Phoenix. According to David Wetta, director of Marcus & Millichap’s national retail group, there are 1,753 retail properties in the Valley [...]
Nov
12
Comments on CoStar Article About Institutional Transactions
This morning, CoStar published an article entitled Institutional Investors Throwing Big Money Around Class A Quality Retail Property. The article highlights several recent large transactions that have taken place and interviews guys from CBRE, Marcus & Millichap and Jones Lange LaSalle for opinions. A few of the points/quotes caught my attention and I thought I’d [...]
Oct
28
CRE Takeaways From Bill Gross’ Investment Outlook
Bill Gross, PIMCO’s revered managing director, has just published his most recent investment outlook. In it, he calls the end of the recent market rally and warns of a necessity to come to grips with the fact that a new normal is headed our way. The closing sentences sum up his point nicely and he [...]
Oct
23
Fresh & Easy Display Ad Spotted in the Wild
This is just a quick follow-up post about Fresh & Easy. I mentioned in my last post about Fresh & Easy that I had recently heard radio advertisements for F&E. Well coincidentally, I spotted a Fresh & Easy skyscraper ad on the home page of 89.9 KCRW while looking up the name of a song [...]
Oct
22
A Few More Words on Vacancy Factors in CRE Underwriting
I wanted to make another quick point on CRE underwriting as it relates to vacancy. Some of the more “with it” sellers have begun allowing vacancy factors underwritten into their offering memorandums. What is often overlooked is the actual relation of the vacancy factor to operations. Often you will see a vacancy factor of 3% [...]
Oct
22
Is A New Underwriting Trend Emerging in CRE?
I received a marketing brochure today that, quite frankly, left me a bit shocked. The property is a multi-tenant retail building in a power center in Southern California. The shocking part of the offering was that the seller and broker were NOT attempting to capitalize income from the vacant suites. Maybe CRE practitioners are starting [...]
Sep
29
Inland Empire Shopping Center For Sale – Calling All Investors Seeking To Lose Money
The package embedded below (see update below) just came across my desk today. It is an offering for a shopping center in Moreno Valley, CA (Inland Empire). The property consists of three ground leased fast food pads (El Pollo Loco, Del Taco and Wendy’s) as well as approximately 22,670 square feet of retail shops in [...]