Lots of conversations about store closings going up, but more good news about spaces being filled quickly reported by Kate King at the #WSJ. #Retail #realestate inventory remains low in high demand locations and markets. Data also shows the US retailers tracking for more store openings than closings as the year progresses. What markets will be heating up next? #retailtransformation #markets #saturation #cre #data Scott Cianciulli Coresight Research Alvarez & Marsal Property Solutions
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Retail bankruptcy isn’t necessarily a negative phenomenon in the current landscape. To commercial real estate landlords, these are fresh opportunities to improve a property and tenant mix. With retail availability hitting record lows due to limited new construction, and increased demand from expanding retailers, restaurants, and other users, replacing departing tenants is now more of an opportunity than ever. This equation allows for the entry of more dynamic tenants who can afford higher rents and attract a larger customer base to shopping centers. Despite the rise in bankruptcies, U.S. retailers are set to open more stores than closures this year. Kate King from the The Wall Street Journal graciously included a quote from our discussion on LMC’s insights regarding this topic. Full article here: https://lnkd.in/e4gtqyi8 #inthenews #retailers #insight
Bankruptcies Have Left More Stores Vacant, but the Space Doesn’t Sit Empty for Long
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The current retail landscape is a perfect example of how two seemingly contradictory things can be true at once. Retailer bankruptcies rose to 26 last year, the highest number since 2020, but at the same time retail vacancy has fallen to a near-record low of 4.1%. Other interesting highlights: - More than three-quarters of Stein Mart’s stores and 40% of Bed Bath & Beyond stores have been re-leased since their bankruptcies - Even with the uptick in bankruptcies, U.S. retailers are still on track to open more stores than they shut this year. - Tenant bankruptcies with lease rejections represent an opportunity for landlords to replace with better credit tenants Retail is dead, long live Retail.
Bankruptcies Have Left More Stores Vacant, but the Space Doesn’t Sit Empty for Long
wsj.com
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Bankruptcies continue to come to the retail sector. But something is different now. Retail landlords are not concerned. The US Retail vacancy rate is hovering around 4%. See the chart in the COMMENT BOX. Landlords now have best-in-class waiting lists. They can pick a best-in-class retailer and push rents at the same time. Despite the uptick in bankruptcies, U.S. retailers are still on track to open more stores than they shut this year. The slowdown in store openings isn’t because retailers don’t want to expand. Rather, people aren’t announcing openings because there’s nowhere to open. Retail construction has been subdued ever since online retailing took off. In the first quarter of 2024, just 9.5 MSF of retail were completed. In Q1 2008, 80 MSF were completed. Simultaneously, 155 MSF of mostly aging retail space has been demolished over the past five years. Supply is unlikely to increase soon. Building retail space doesn’t pencil out given the high land, construction, and labor costs.
Bankruptcies Have Left More Stores Vacant, but the Space Doesn’t Sit Empty for Long
wsj.com
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Retail Space Dynamics: Resilience Amid Rising Bankruptcies Despite a surge in retail bankruptcies, the commercial real estate market remains robust, with vacant spaces quickly refilled. Here’s a look at the latest data and trends: Key Insights: Bankruptcies on the Rise: Retailer bankruptcies rose to 26 last year, the highest since 2020, with more than a dozen retailers, including Express, Rue21, and Ted Baker, announcing store closures in 2024. Recent Major Filing: Red Lobster filed for Chapter 11 bankruptcy this month, planning to break leases at 108 of its 550 locations. High Absorption Rates: Approximately 40% of the 721 closed Bed Bath & Beyond locations have been leased within a year of the retailer’s bankruptcy. Retail Availability: Retail vacancy rates are near record lows at 4.1%, making it easier for landlords to replace departing tenants. Construction Trends: Retail construction remains at record-low levels, with only 9.5 million square feet of new retail space completed in Q1 2023, compared to over 80 million square feet in Q1 2008. Landlord Opportunities: Landlords like Kimco Realty and Kite Realty Group see these vacancies as opportunities to attract best-in-class retailers and push rents higher. Changing Tenant Mix: New tenants often include discount retailers, fitness centers, and grocers, reflecting changing consumer preferences and economic conditions. Limited New Supply: High costs of land, construction, and labor deter new retail developments. Rents would need to increase by 35% to justify new supply, according to Kimco’s CEO. This data underscores the adaptability and resilience of the retail real estate market. Even amid economic challenges and rising bankruptcies, landlords are capitalizing on opportunities to enhance their tenant mix and drive growth. #wsj #retail #cre #cref #economy https://lnkd.in/eJYAwyxw
Bankruptcies Have Left More Stores Vacant, but the Space Doesn’t Sit Empty for Long
wsj.com
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Unlock Hidden Retail Opportunities Amid Market Shifts 🚀 Retail space is tight, and investors expect growth. Here's a savvy tip: keep an eye on leaseholders closing up shop due to bankruptcy. Public notices give you the edge with early notifications. Take Mod Pizza, for example. Rumor has it they're teetering on the brink, possibly filing for Chapter 7 this week. With over 500 stores, including eight here in Florida (Jacksonville and Orlando), the potential is huge , and the situation is certainly worth keeping an eye on. Their ambitious goal was 1,000 stores by 2024. This could mean prime retail space, leased but not yet opened, is up for grabs. Stay ahead of the game and seize these hidden gems! 💡 #RetailRealEstate #InvestmentTips #CRE #Opportunities
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A recent topic discussed in my Community and Economic Development class is how East Central Florida’s economic structure has changed over the past 25 years due to globalization, a major shift towards a service economy, and large-scale retail consolidation. The discussion reminded me of the relatively recent wave of Big Lots store closures. Over 300 Big Lots stores are shutting down nationally. 26 Big Lots stores are closing in Florida, 3 which are based in Orlando. According to the East Central Florida Regional Planning Council, industries like department stores, supermarkets, temp. Help, and employer orgs all fall under the category of losing industries in the region. Luis Nieves-Ruiz, FAICP Read this article to learn more: https://lnkd.in/eDW_uTAk
Full list of Big Lots locations closing in Florida
fox35orlando.com
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Wickes Half-Year Update Earlier today Wickes published their Interim Results for the six months ending 29 June 2024. With total revenue down 3.4% year on year to £799.9m, the ‘Challenging Market Environment’ continued to impact on big ticket purchases. But there where some interesting comments that point to opportunities. Here's 5 that might help 👇 1. Optimise Cost Management and Margins Review current cost structures and implement tighter controls on operational expenses, similar to Wickes' efforts in mitigating inflationary impacts. This could involve renegotiating supplier contracts, improving procurement practices, or reducing overhead costs to protect margins. 2. Strengthen Customer Loyalty and Engagement Initiatives Consider developing or enhancing loyalty programs, akin to Wickes' successful TradePro initiative. Focus on building a robust customer base by offering targeted promotions, discounts, or value-added services that cater to both retail customers and trade professionals. 3. Diversify Product Range to Target Price-Sensitive Customers Expand or reposition product offerings to appeal to more price-sensitive segments, much like Wickes’ emphasis on their lower-priced kitchen range. Evaluate your product mix to identify opportunities to introduce more competitively priced options or value-driven products that resonate with budget-conscious customers. 4. Invest in Strategic Store Development Prioritise investment in high-performing stores or regions and consider refurbishments where necessary to enhance the customer experience. Take a data-driven approach to identify locations that could benefit most from investment, ensuring maximum return on capital expenditure. 5. Explore Opportunities in Emerging Markets and Sustainability Investigate opportunities for diversification into emerging markets or sustainable product lines, inspired by Wickes' entry into the solar market. This could help capture new customer segments, align with growing environmental concerns, and differentiate your business in a competitive landscape.
Rethink Retail Top Retail Expert 2025, RTIH Top 100 Retail Technology Influencer, Retail Commentator, International Speaker and Expert on the Home & Garden Industry. Group Managing Director | Sales & Marketing Director
Earlier today Wickes Group published their Interim Results for the six months ending 29 June 2024. Total revenue reached £799.9m, down 3.4% year on year, as the ‘Challenging Market Environment’ continued to impact on big ticket purchases. Three stores were refitted during the period and two new stores opened, one in Chelmsford and most recently in Aberdeen. Aberdeen store opening - https://lnkd.in/eHaA58hM Read the detail on their first half results here - https://lnkd.in/eK3WJv8q #retailnews #homeimprovement #results #retail
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As the brilliant Liam Carpenter highlights in his sketches (“In Germany we don’t say…”), the German language excels at creating highly specific terms. One example I picked up during my time in Berlin is Nahversorgungszentrum—literally a “near-supply centre.” While not the snappiest English translation, it perfectly captures the concept of a local shopping or service hub designed to meet the everyday needs of a nearby residential population. Interestingly, these assets are now at the top of many investors’ wish lists—not just in Germany but across global markets, as noted in this insightful piece from Hodes Weill & Associates (thanks, Jonathan Read for sharing). What better way to stay aligned with consumer spending patterns than by focusing on our most essential needs? Does this growing interest in Nahversorgungszentren indicate a shift away from high-end or luxury retail? In France, at least, that would contrast with what Antoine Salmon and Vianney d'Ersu suggested this summer in Newmark’s note on the Champs-Élysées (see the comments for more details). Or are we seeing a polarization in the retail market, where demand for the essential and the ultra-luxury increasingly overshadows the (very wide) mid-range? #retail #CRE #Nahversorgungszentrum #groceries
Grocery-anchored retail is one of the most attractive and defensive investments in real estate as it generates stable cash flow throughout market cycles while attracting shoppers several days a week, creating consistent foot traffic for other tenants. For the full article read Kelly Keith's market commentary on our website: https://lnkd.in/eXuVzjJE or below. #institutionalinvestors #realestate #marketcycles #groceryanchoredretail
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Recent retail bankruptcies are reshaping the commercial real estate market. The Wall Street Journal reports that despite store closures, demand for retail space remains high while vacancy rates remain low. Landlords are leveraging this opportunity to drive value to the properties within their portfolios. Read more about the bankruptcies effect on the market here: https://lnkd.in/ej36XSw5 #CommercialRealEstate #CRE #RealEstate #MarketTrends #RetailSpace
Bankruptcies Have Left More Stores Vacant, but the Space Doesn’t Sit Empty for Long
wsj.com
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Grocery-anchored retail is one of the most attractive and defensive investments in real estate as it generates stable cash flow throughout market cycles while attracting shoppers several days a week, creating consistent foot traffic for other tenants. For the full article read Kelly Keith's market commentary on our website: https://lnkd.in/eXuVzjJE or below. #institutionalinvestors #realestate #marketcycles #groceryanchoredretail
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