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
29
First Look: Microsoft Retail Store Grand Opening
So today I decided to go check out the grand opening of the Microsoft retail store at Simon’s Shops at Mission Viejo. I must say the store is impressive but the design does remind me of another retail store but I just can’t quite put my finger on which store that might be….. The store [...]
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
28
Vitamin Shoppe Completes I.P.O.
Vitamin Shoppe has just completed an IPO, raising about $155 million. You can read more about it at DealBook. What I thought was most interesting was the fact that this was first I.P.O. by a traditional retailer since December 2007! The proceeds from the offering are being used to pay down debt and to pad [...]
Oct
27
Buyer Requirement Email – What Not to Write
Below is the text of an email I received this morning from a broker seeking investment property submissions from the CRE community. The only problem is that the stated requirement is a buyer’s dream wish list and it warrants nothing more than an immediate “delete.” Here is the email: Please forward me available properties that [...]
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 [...]
Oct
08
Interesting Fresh & Easy Article
Below is an interesting article published by the Arizona Republic on Tuesday. Based on the published numbers of $267 million in first half sales from 130 stores, Fresh & Easy’s full year sales should be approximately $534 million or $4.1 million per unit. The average Fresh & Easy store is 14,000 square feet so their [...]
Oct
07
Inland Empire Vacancy
Calculated risk put up a post yesterday about a topic that is near and dear to my heart: the Inland Empire commercial real estate market. In summary, the retail vacancy rate continues to rise in the Inland empire. I also thought it was humorous that the primary source for this data was CB Richard Ellis. [...]
Oct
02
Overpriced Deal of the Week
For those of you who have been reading this blog lately you will know that the overpriced deal of the week was already announced on Tuesday. To call Moreno Beach Plaza overpriced would be like saying Fresh & Easy is underperforming. So in honor of this new and (potentially) recurring post, I present you with [...]
Oct
01
Green Shoots in Retail?
I just read a post on the CRE blog Net Lease Nation talking about the upcoming holiday season. Apparently, Fitch Ratings is bullish on the retail sector: “Many companies across Fitch’s U.S. retail coverage have been managing inventory positions well. Gross margins have rebounded for those companies in the discretionary categories that were hit particularly [...]
Oct
01
Calls From Appraisers Increasing – Banks Clearly Worried About Losses
Lately I have been receiving a high volume of calls from appraisers. Appraiser calls are nothing new. Normally, I receive a handful a month calling to ask questions about properties I have sold or asking for my opinion on a particular property they are trying to value. Now, I am receiving several appraisal calls per [...]