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WeWork: the ‘hypothetical’ company at the heart of the property market
July 1, 2019 | | Financial Times | by Eric Platt and Andrew Edgecliffe-Johnson in New York 10 HOURS AGO
commercial_real_estate  WeWork 
july 2019 by jerryking
Store wars: short sellers expect more pain in US retail
February 26, 2019 | Financial Times | by Alistair Gray in New York.

Short sellers who made big bets against US retailers a couple of years ago had hoped for carnage across the board. No one could compete with the rise and rise of Amazon...which would make life hard for every mall tenant across America.

But after a period in which internet shopping seemed to hit almost every brick-and-mortar retailer, the industry seems to be dividing into winners and losers. Casualties are still piling up: bankruptcies since the turn of the year....Payless Shoes ....Sears, the once dominant department store chain, narrowly avoided outright liquidation.

However, some of the biggest companies e.g. Walmart & Best Buy are reporting their healthiest metrics in years......For short sellers trying to profit from falling share prices, it makes for a perilous environment.

“It’s a slow death by a thousand paper cuts, and not the kind of ‘mall-mageddon’ originally anticipated by that trade,”.....“Retail has been much more volatile than many would have expected. It hasn’t been decidedly one way down.”....an over-reaction in 2017 and that led to pretty nice opportunities [for longs] in 2018,”.....Investors who put money on the demise of retail that summer have lost out in many cases......It was almost as if they [shorts] were acting like no retail real estate space can work,” ....overcapacity doesn’t mean retail real estate is dead.”...Shares in the sector have been volatile in part because investors have had to consider a series of seemingly contradictory data points about the health of both the US consumer and the retail business.....Traditional chains are also trying to take on Amazon by improving their online offerings and making their stores more enticing. Both require hefty investment, although successful examples include Lululemon, which offers yoga lessons in its stores. Shares in the company have tripled since a 2017 low.

“Those who are innovating and investing in ecommerce, marketing and social media tend to be doing well...“The US is still over-stored,” ...Ecommerce meant “more of the store base is not economic. That’s going be a secular pressure for years to come. For those retailers that don’t have a digital strategy, it’s just a matter of time before they fall.”
Amazon  apocalypses  bankruptcies  barbell_effect  bear_markets  bricks-and-mortar  commercial_real_estate  death_by_a_thousand_cuts  department_stores  digital_strategies  e-commerce  innovation  investors  investment_thesis  Lululemon  pain_points  overcapacity  retailers  shopping_malls  short_selling  structural_decline  Wal-Mart 
february 2019 by jerryking
Is Thomas Goode a sleeping giant of British retail?
August 31, 2018 | Financial Times | by Horatia Harrod.

200 year old Thomas Goode & Co is a homewares powerhouse.... Outfitted in morning suits, the staff — many of whom have worked at Thomas Goode for more than two decades — are solicitous and impeccably well-informed. There’s only one thing lacking. Customers....Johnny Sandelson, is the property entrepreneur who acquired the store for an undisclosed amount in July 2018. .....Sandelson has set himself the task of waking the company up — and it’s going to take more than just turning on the lights. What is required is a 21st-century overhaul....Thomas Goode sells more over the phone than it does online, for the simple reason it has no ecommerce platform. Some 40 per cent of its £5m in annual sales comes from special orders — a loyal client outfitting their new yacht or private jet — but oligarchs alone are unlikely to keep the business afloat....The plan, Sandelson says, is to democratise. “Fortnums did it, Smythson did it. Those great British brands reinvented themselves to become relevant to the affluent middle classes, but Thomas Goode didn’t.”.......Sandelson hopes that, in an age of experiential retail, the shop’s peerless service will entice a new generation of customers. He’s also eyeing up collaborations to reach those for whom the Thomas Goode name has little resonance.......Parts of the business that had lain dormant are to be revived, with an injection of £10m-£15m in investment. There’s a voluminous archive to be mined for designs, and production of tableware in the Thomas Goode name is being restarted at factories in Stoke-on-Trent......Sandelson is committed to a revival. “We’re unashamedly proud of our British heritage and our British brand,” he says. “To honour that, you have to be involved with a very high standard of manufacturing in Britain. There would be cheaper ways of going about things, but the British way stands for quality. Stoke-on-Trent has been producing beautiful plates for 200 years. So it works for us.”....Almost inevitably, the top floors of the South Audley Street flagship are to be turned into luxury flats. “Will we be able to afford a shop of this scale in the coming years?” says Sandelson. “I think the brand is bigger than the premises. I’m pursuing the dream on the basis that the building will be developed over time and we’ll hope to have a space within it.”
21st._century  brands  commercial_real_estate  entrepreneur  experiential_marketing  gift_ideas  heritage  history  homewares  London  luxury  middle_class  property_development  real_estate  retailers  restorations  revitalization  turnarounds  United_Kingdom  Victorian 
september 2018 by jerryking
What Land Will Be Underwater in 20 Years? Figuring It Out Could Be Lucrative
Feb. 23, 2018 | The New York Times | By Brad Plumer

In Charleston, S.C., where the ports have been expanding to accommodate larger ships sailing through the newly widened Panama Canal, a real-estate developer named Xebec Realty recently went looking for land to build new warehouses and logistics centers.

But first, Xebec had a question: What were the odds that the sites it was considering might be underwater in 10 or 20 years?......Yet detailed information about the city’s climate risks proved surprisingly hard to find. Federal flood maps are based on historical data, and won’t tell you how sea-level rise could exacerbate flooding in the years ahead.....So Xebec turned to a Silicon Valley start-up called Jupiter, which offered to analyze local weather and hydrological data and combine it with climate model projections to assess the potential climate risks Xebec might face in Charleston over the next few decades from things like heavier rainfall, sea level rise or increased storm surge....the reliability of Jupiter's predictive analytics is uncertain....that said, “In economics, information has value if you would make a different decision based on that information,”...... Congress has generally underfunded initiatives such as those at the Federal Emergency Management Agency to incorporate climate change into its federal flood maps.......to get a full picture of flooding risk, you need expertise in weather, but also climate and hydrology and engineering and running complex models on the latest computer hardware,” ... “All of those specialized disciplines are usually heavily siloed within the public sector or the scientific community.”....Jupiter, which acknowledges the uncertainties in climate forecasting, will have to prove that a market exists....flooding and other disasters have led to record losses by insurers.....[Those] losses raised the stakes in terms of trying to get the best possible science on your side when you’re pricing risk,” said John Drzik, president of global risk at Marsh,
climate_change  weather  start_ups  data_driven  forecasting  hard_to_find  predictive_analytics  tools  Charleston  South_Carolina  uncertainty  sea-level_rise  floods  commercial_real_estate  adaptability  specificity  catastrophes  catastrophic_risk  unpredictability  coastal  extreme_weather_events  insurance  FEMA  cartography  floodplains  flood-risk  flood-risk_maps  mapping  historical_data 
february 2018 by jerryking
Navigating a Breathtaking Level of Global Economic Change
November 14, 2017 |The New York Times | by Andrew Ross Sorkin.
you’d think that any sense of “faith” in the global economy might be shaken, or at least, uncertain given events like North Korea, Russian interference in elections in the United States, post-Brexit Europe, and hurricane damage.

Not so.

In conversation after conversation with some of the nation’s top business leaders and chief executives last week, there is a stunning amount of genuine “confidence” in our economy here and, yes, even globally.

“I’m very surprised,” Laurence D. Fink, the founder of BlackRock, the largest money manager in the world overseeing some $6 trillion, said at The New York Times DealBook conference last Thursday, describing his new sense of optimism.......Mark Cuban, whose disdain for President Trump is so acute that he is considering running for president himself in 2020 as a Republican because it “means you get to go head-on with Trump right in the primaries — and so there’s nothing I’d have more fun doing.” Still, though, he said he believes the economy is in good enough shape that when it comes to investing in the stock market, “I just, you know, I just let it ride.”

Mr. Cuban, owner of the Dallas Mavericks, said he keeps a small amount of cash on hand as a precaution. “I keep a little bit, you know, as a hedge. I call it my ‘Trump hedge’ because you just never know.....Earlier in 2017, The Conference Board reported that chief executives’ confidence had reached 2008 pre-recession highs in the first quarter.....there are pockets of the economy that are causing anxiety. “The last two or three years have not been fun whatsoever,” Mickey Drexler, the chairman of J. Crew, said at the conference about the traditional retail business, which has been upended by Amazon and changes in consumer behavior. “It’s been miserable.” Those challenges are extending to mall owners and commercial real estate, too..... is the stock market a proxy for the economy of America?....“In the aftermath of corporate and public-sector disasters, it often emerges that participants fell prey to a collective form of willful blindness and overconfidence: mounting warning signals were systematically cast aside or met with denial, evidence avoided or selectively reinterpreted, dissenters shunned,” Roland Bénabou a professor at Princeton University wrote in a seminal work on confidence and groupthink. “Market bubbles and manias exhibit the same pattern of investors acting ’colorblind in a sea of red flags,’ followed by a crash.”
Amazon  Andrew_Sorkin  BlackRock  bubbles  CEOs  commercial_real_estate  consumer_behavior  confidence  denials  global_economy  groupthink  J._Crew  Laurence_Fink  manias  Mark_Cuban  market_crash  Mickey_Drexler  optimism  overconfidence  precaution  retailers  selection_bias  shifting_tastes  shopping_malls  warning_signs  willful_blindness 
november 2017 by jerryking
Landlords Try Turning Strip Malls Into Winter Hangouts - WSJ
By Esther Fung
Sept. 19, 2017

Landlords of strip malls are trying to take the chill out of the air by adding outdoor entertainment programs (e.g. ice-skating rinks, fire pits and programmed entertainment such as tree-lightings), in hopes of attracting more shoppers in an era of declining foot traffic.....landlords are also overseeing residential property development in their out-parcels as well.......While shopping centers typically attract shoppers focused on transactions during the fall and holiday seasons, more landlords want to create destinations for the local community that may not be entirely focused on buying something........The moves come at a time when bigger shopping center landlords are investing more to cater to changing consumer lifestyles as shoppers handle more of their transactions online...........
shopping_malls  entertainment  commercial_real_estate  landlords  foot_traffic  shifting_tastes 
september 2017 by jerryking
Supermarkets Face a Growing Problem: Too Much Space - WSJ
By Heather Haddon and Julie Jargon
July 31, 2017

A massive retail build-out has taken a toll on earnings, leaving the industry vulnerable to closures; ‘There’s only so much food we can buy’....Supermarket chains operating in dense areas where shoppers have more online grocery options are particularly vulnerable to future consolidation, according to Barclays Capital Inc., which said that 38 of the top 50 grocery markets in the U.S. are already too saturated by food retail per capita or are on track to be so by next year......the growth in groceries has extended across many types of retailers in recent years. Part of the expansion comes from grocers, who accelerated their store openings as a way to drive sales growth after the 2008 recession. At the same time, club chains, dollar stores, pharmacies—and even gas stations—increased their fresh food offerings to drive traffic and boost profits.....The food-retail sector has become even more saturated at a time when competition is only getting fiercer, particularly at the two ends of the shopping spectrum. Growing European deep-discounters Aldi and Lidl are vying for U.S. market share, hoping their prices will win over the budget-conscious shopper while internet companies like Amazon.com Inc. are trying to lure higher-income grocery shoppers online. Regional supermarkets and conventional ones such as Kroger Co. and Albertsons Cos. are the most likely to get squeezed in the process, according to analysts....... enduring changes in eating and food-shopping habits toward cheaper and more convenient options means consumers will increasingly spread their dollars among a variety of retailers.
retailers  grocery  supermarkets  oversaturation  e-commerce  barbell_effect  real_estate  store_openings  commercial_real_estate  prepared_meals  convenience_stores  pharmacies  overcapacity  Aldi  Lidl  consolidation 
july 2017 by jerryking
Chinks emerge in the armour of prized malls
22 July/23 July 2017 | Financial Times | Miles Johnson.

A defining feature of the financial crisis was a group of hedge funds making vast sums by wagering against supposedly AAA-rated mortgage debt well before markets imploded in 2008.

Now some believe a similar story will play out for US shopping malls — that the most risky investments will end up being those that investors now believe to be the safest. Central to their premise is the idea that too much faith may be being placed in a classification system used for shopping malls that is little known outside of the real estate sector.....investors are also actively leaving the office and conducting field research.

In April researchers from a large US hedge fund travelled to the outer boroughs of New York to a shopping mall that is home to Apple and Armani among other retailers....To their surprise the researchers quickly came across a pop-up shop selling cheaply manufactured stuffed teddy bears and plastic toys. Two months later the store had disappeared....
The stock market has until recently appeared to believe that prime “A” malls are largely insulated from the pain being felt across a US retail sector being shaken by e-commerce.

Shares in Washington Prime, an operator of lower quality B and C classed malls, are down by half since the start of 2015. However, until recently shares in “prime” mall operators Simon Property Group and GGP had held up, underpinned by the belief that their A-quality malls in prime locations were safe from the challenge of online shopping.......Yet there is growing evidence to suggest that these prime malls, which have been treated by investors and lenders alike as rock solid bets in the face of the internet headwinds, are not as protected as once thought.

Shares in Simon Property, the largest Reit in America with a market value of $50bn, are down by almost 30 per cent over the past 12 months, having held up strongly to the middle of 2016. Short interest in Simon, which tracks the amount of shares hedge funds have borrowed to bet that its value will fall, rose to the highest level since the financial crisis last month, with bets worth more than $1bn.....The hedge funds wagering against the highest quality malls believe that the wider market will come to believe these A-quality malls are far more similar to lesser ranked ones. “This idea that there are these magic malls in America that are immune to secular change is a myth,” the US-based hedge fund manager says.

Some argue that the market under-appreciates that A class mall operators and B and C class mall operators all have very similar tenant bases, in spite of being in different locations. L Brands, the owner of lingerie chain Victoria’s Secret, is the largest single tenant for prime operator GGP, according to company filings.....it is also the biggest tenant for the lesser ranked CBL and second largest for Washington Prime.....Russell Clark of Horseman Capital notes the vulnerability malls have to the loss of single big brands, known as anchor tenants, with their departure often triggering a wave of rent loss with other tenants.

“Many tenants have a clause in their lease to reduce rents should an anchor close a store. Thus, even though the loss of rent due to an anchor closing is minimal, the knock-on effect of reduced rents from the remaining tenants is a serious concern,” he noted.....the hunt for opportunities to bet against quality malls outside the US. The share prices of Intu Properties and Hammerson, the UK’s largest publicly listed shopping centre operators, have not yet followed the falls seen in the shares of their largest tenants.
shopping_malls  commercial_real_estate  real_estate  MappedIn  mapping  hedge_funds  primary_field_research  pop-ups  store_closings  pretense_of_knowledge  illusions  under_appreciated  retailers  vulnerabilities  anchor_tenants  REITs  L_Brands  A-class  B-class  C-class  Victoria's_Secret 
july 2017 by jerryking
Mall Owners Flex Hidden Muscles Over Lenders - WSJ
increasing uncertainty over the fate of malls across the U.S., stemming from the rise of e-commerce and fickle consumer preferences, have led to more volatile valuations in recent years.

Landlords who owe millions of dollars on struggling shopping malls are finding they have serious bargaining power.

At a time when retailers are closing thousands of stores across the U.S., some lenders are deciding to renegotiate loans backing malls—and suffer guaranteed losses—rather than run the risk of being stuck owning or operating the malls themselves.

Shopping mall owner Washington Prime Group WPG -0.94% last June defaulted on an $87.3 million loan backing Mesa Mall in Grand Junction, Colo., and turned the keys over to creditors.
Rather than operate the mall, the creditors quickly sold the property—right back to Washington Prime—at a lower price. Late last month, Washington Prime told investors it had repurchased the mall and secured a discounted payoff of the original loan for $63 million.

While the creditors, a collection of bondholders such as insurers and other institutional investors, took a write-down of $24.3 million, they avoided having to own or operate the mall themselves.
=============================
RESEARCH: MORE STORES NEED TO SHUT

In April 2016, real-estate research firm Green Street said roughly 800 stores should be closed to bring department-store retailers back to a level in which sales per square foot is in line with 2006 levels, a period considered normal.

Now the research firm is raising the tally.

“Just a year later, the 800 number looks much too light on a strict sales productivity standpoint and is much lower than what will ultimately be needed as the industry will likely need to massively rationalize its store count as it reinvents its business model,” Green Street said in a report.
===============================
“There’s a secular change in how people are shopping at the mall, which is affecting short-term value-enhancement strategies,”
shopping_malls  creditors  landlords  commercial_real_estate  sales_per_square_foot  store_closings 
july 2017 by jerryking
Has America Built Its Last Major Mall? - WSJ
By Esther Fung
June 27, 2017

Appetite for building enclosed malls of more than 800,000 square feet has dried up. Department stores, once dependable foot-traffic generators, are closing locations amid stiff competition from off-price retailers and the growth of online shopping.

A mall construction spree in the 1970s and 1980s has left in its wake aging properties at a time when there is little capital available for upgrades. As anchor stores close, more mall space sits idle and foot traffic wanes, hastening the march toward death.

In all, there are roughly 1,200 malls in the U.S., and some analysts see the figure bottoming out at 500 to 800.
shopping_malls  retailers  e-commerce  commercial_real_estate  Taubman  foot_traffic  department_stores 
june 2017 by jerryking
Sorry, we’re closed: The decline of established American retailing threatens jobs | The Economist
May 13th 2017 | New York

Therein lies the problem for America’s retailers. Not every mall or shop is dying. For now, store-occupancy rates are healthy. Nor have consumers stopped shopping. But they are spending money in new ways to the benefit of other businesses, such as restaurants, hotels and e-retailers, in particular Amazon. As a result, a giant established industry is descending into crisis.

Last year about 4,000 shops closed their doors for good. In 2017 more than twice that number may shut, says Credit Suisse, a bank. Consumer confidence is strong and unemployment is at its lowest level in a decade, yet S&P Global Ratings expects retailing defaults this year to surpass those in 2009 when the economy was in the depths of a recession.

The most important question is how far and how fast the industry might sink. This has implications not only for retailers and retail-property companies but also the financial firms that have given them money, from banks to life-insurance companies.
Amazon  decline  e-commerce  shopping_malls  retailers  dying  reboot  commercial_real_estate  store_closings 
may 2017 by jerryking
The Internet Isn’t Killing Shopping Malls—Other Malls Are - WSJ
By Esther Fung
April 18, 2017

One common hallmark of a dead or dying mall is the closure of an anchor store. When that happened, fewer customers tended to visit, resulting in more store closures, which led to even fewer shoppers, and so on......Landlords have grappled with numerous threats over the years. Two decades ago, Blockbuster was eating into the revenue of movie chains, while big-box stores were battering smaller stand-alone retailers, noted Sandler O’Neill Partners analysts in a recent report.

This time, factors such as consumers being more thoughtful about their purchases after the recession, the overbuilding of retail centers and retailers’ focus on investing in more online shopping channels are pressuring mall landlords.

Property owners generally try to court trendier brands and avoid outdated retailers. In recent years, they have started shaking up their tenant mix more radically, moving away from full-price apparel brands and toward entertainment and food offerings.

That is resulting in a more dramatic separation of the strongest and weakest malls, with top-tier malls in cities with strong population and income growth receiving more investment and weaker malls suffering from neglect.
shopping_malls  competition  e-commerce  landlords  commercial_real_estate  retailers  anchor_tenants  top-tier 
april 2017 by jerryking
Anchors Away: Malls Lose More Department Store Tenants - WSJ
By LIAM PLEVEN
Updated Feb. 23, 2016

The rise of online shopping and changing consumer habits are battering the big department stores known as anchors that once lured shoppers to malls—leaving landlords with empty space and forcing them to undertake expensive overhauls to stay relevant.
shopping_malls  commercial_real_estate  retailers  LBMA  e-commerce 
february 2016 by jerryking
Sears Canada races to close more stores amid cost-cutting efforts - The Globe and Mail
Jan. 24, 2016 | G&M | MARINA STRAUSS - RETAILING REPORTER

Sears Canada Inc. is stepping up its efforts to close another round of stores, raising more questions about its fate and putting pressure on landlords who already have a lot of empty retail space.

The struggling Sears has instructed real estate firm CBRE to look for alternative uses for Sears’s weakest stores, such as its clearance outlets... As well, Sears officials are working internally to shrink its store network, he said....Sears’s most recent store-closing plans differ from previous shutdowns, which involved landlords often approaching Sears with offers to buy back the retailer’s store leases to replace Sears with alluring foreign retailers, such as United States-based Nordstrom Inc., which could draw more customers.

But amid the rash of retailers such as Target that have closed stores, landlords no longer have compelling new retailers to fill so much space. ...Sears is determined to turn around its core business and remain in many locations, although some may be downsized or closed when the lease expires. He hired Carrie Kirkman, a seasoned merchant, late last year as Sears’s new president, aiming to lure younger consumers with new styles and store layouts. He’s looking to improve the state of some of Sears’s stores.
Marina_Strauss  retailers  cost-cutting  commercial_real_estate  CBRE  consolidation  store_footprints  under-performing  downsizing  small_spaces  Sears_Canada  RioCan 
january 2016 by jerryking
Breaking down HBC’s big deal – and why it matters - The Globe and Mail
TIM KILADZE
Breaking down HBC’s big deal – and why it matters
SUBSCRIBERS ONLY
The Globe and Mail
Published Wednesday, Feb. 25 2015
deal-making  real_estate  HBC  Tim_Kiladze  Bay_Street  retailers  RioCan  Richard_Baker  commercial_real_estate 
february 2015 by jerryking
A Start-Up Helps Towns Market Their Property - NYTimes.com
By LISA PREVOSTAUG. 5, 2014

Two public policy graduates at the Kennedy School at Harvard University are trying to build a business of helping municipalities with a task at which they are notoriously deficient: managing and marketing their real estate portfolios.

Called OpportunitySpace, the start-up works with municipal governments to put their publicly owned real estate holdings in a public online database. Specifics about each property, such as square footage, assessed value and delinquent taxes, are linked to its address. The parcels are mapped geographically.
KSG  start_ups  cities  commercial_real_estate  entrepreneur  municipalities 
august 2014 by jerryking
Manulife launches new private markets group
Nov. 11 2013 | The Globe and Mail |JACQUELINE NELSON.

Manulife Financial Corp. is formally launching a new institutional investment business group after a year of building up assets and planning an expansion.

The business, called Manulife Asset Management Private Markets, manages $74-billion of its parent company’s $575-billion in funds under management. Management plans to grow that pool by seeking out new investors and deepening its focus on three target areas: commercial real estate equity, commercial mortgage lending and private placements.
Manulife  private_equity  institutional_investors  Bay_Street  commercial_real_estate  product_launches 
november 2013 by jerryking
Developer Plans to Crowdfund a Manhattan Hotel - WSJ.com
September 18, 2013 | WSJ | By MELVIN BACKMAN.
Developer Plans to Crowdfund a Manhattan Hotel
Prodigy Network Hopes to Raise $31 Million in Equity—$100,000 at a Time.
crowdsourcing  crowdfunding  hotels  real_estate  commercial_real_estate  New_York_City 
september 2013 by jerryking
Real estate titan in search of the next Brazil
September 14, 2013 | G&M | TARA PERKINS
Daniel Fournier, chief executive of Ivanhoe Cambridge
commercial_real_estate  real_estate  Ivanhoe  CEOs  Oxford  Rhodes 
september 2013 by jerryking
Ken Lombard, on Staying a Student of Business - NYTimes.com
By ADAM BRYANT
Published: July 6, 2013

When I go and speak to B-school students, the point I try to emphasize is, don’t stop being a student of the game. Don’t think that when you get out of this institution with your degree that now you walk on water. This should make you hungrier than you’ve ever been, because there are people who are coming out with fewer credentials who are very, very hungry....The time I spent working with Howard Schultz at Starbucks [as president of Starbucks Entertainment] was a tremendous learning experience for me in a lot of ways. He was very disciplined in that he was such a thorough and deep thinker, and would really commit to diving in and looking closely at any particular situation, and would turn over every stone. But he would not get stuck on the analysis side, and would have the guts to make the decision, and not accept the status quo....I’m a guy who comes from hard work, and I’m a guy who comes with an approach that says, before I make a tough decision, I want to be on the ground, I want to roll up my sleeves and understand the opportunity. While I understand that analysis tells you what you need to hear in how you need to structure a deal, there’s a difference between deal makers and analysts. Analysts can tell you everything wrong with the deal; the deal maker is going to try to figure out a way to come up with a structure that makes sense.

That doesn’t mean you should ignore what the numbers tell you, but you should try to figure out a structure that mitigates your downside. I try to make sure they understand that deal-making takes some guts. You can’t develop that in a short period. You have to be willing to go out and get the experience, and not think that this is going to happen for you overnight.

You can speed up the learning curve by positioning yourself in a way so people who have the experience want to help you. You have to make it conducive for them to really want to provide you with the information. Then become a sponge. That will help accelerate some of it. Go to someone who has done this before and try to get them to provide you with some guidance, so you’re not reinventing the wheel.
African-Americans  Magic_Johnson  commercial_real_estate  Starbucks  torchbearers  entrepreneur  dealmakers  deal-making  learning_curves  mentoring  life_long_learning  analysis  hard_work  Jason_Isaacs  risk-mitigation  staying_hungry  analysts  assessments_&_evaluations  playing_in_traffic  reinventing_the_wheel 
july 2013 by jerryking
Sears joins retail’s real estate push
Jun. 04 2013 | The Globe and Mail | MARINA STRAUSS - RETAILING REPORTER.

“Everyone is milking their real estate,” said Jack Klaiman, president at retail real estate adviser Oberfeld Snowcap. “This is the hidden asset. … It’s a smart move.”.... “Real estate has always been a valuable aspect of many businesses, particularly in retail,” he added. “This is the right development opportunity for us to pursue.”

Real estate is a hot commodity in retail as a growing array of foreign retailers look for sites here amid a dearth of locations. Retailers, including Nordstrom, are believed to be interested in some Sears sites, especially its flagship store at the Toronto Eaton Centre, where its head office also is located.
head_offices  commercial_real_estate  real_estate  Marina_Strauss  REITS  retailers  Loblaws  Canadian_Tire  hidden  Sears_Canada 
june 2013 by jerryking
Staples looks to downsize 39 stores - The Globe and Mail
Staples looks to downsize 39 stores Add to ...

Marina Strauss

The Globe and Mail

Published Wednesday, Apr. 10 2013
Staples  downsizing  big-box  commercial_real_estate  Marina_Strauss 
april 2013 by jerryking
Rooftop Farms: Here to Stay or Passing Phase? | industrial - Equities.com
September 7, 2012 | National Real Estate Investor |Jennifer V. Hughes,

Steven Peck, president and founder of the industry association Green Roofs for Healthy Cities, estimates there are less than 20 rooftop agriculture sites now nationwide. Some are farms with layers of soil and crops and others use hydroponic greenhouses.

Rooftop farming has many upsides... The companies that install rooftop farms pay all costs of construction. Rooftop agriculture carries many of the same environmental benefits as traditional green roofs. Rooftop farms often capture waste heat from buildings to use in their greenhouses in winter times, says Kate Siskel, BrightFarms' marketing associate. That means you have to pay less to cool, say, a facility with industrial ovens or a heat-emitting data center.

Rooftop agriculture projects also usually set up a system to capture storm water run-off, Siskel says. They provide some of the same insulation as a traditional green roof, which saves on heating and cooling. Some roof farms can even contribute to a building's LEED certification.

Then, there is the fact that a rooftop farm is a tenant like any other in a commercial building. Several rooftop farming companies declined to say how much they pay in rent, but Peck says it varies from .50 to $2 per sq. ft. It's not a lot, but Peck notes, "right now they're getting zilch."

"Roof space is a valuable asset and we need to use those spaces," he says. "We need the commercial building industry to wake up and learn that their roofs can do a lot more for them and for their neighbors." ...Robert S. Best, executive vice president at Jones Lang LaSalle, says he still thinks it's a tough sell. There are no green roofs or rooftop farms within the JLL portfolio, even though the company is an environmental leader in many other ways.

Best says building owners worry about whether a green roof or roof farm would cause problems with the roof that would void the warranty. So many urban roofs are cluttered with cooling towers, elevator equipment and window-washing rigs, making it hard to find space.

"My main question would be, "Why?'" Best says. "To get all the equipment on the roof, to put in all the beds, it's such a major undertaking-is it really worth all the trouble?

"I think the reason you don't see a lot of it is that it's not worth all the trouble that a green roof brings with it, at least for the big commercial property owners to even think about," Best says.
institutional_investors  commercial_real_estate  greenhouses  hard_to_find  green_roofs  BrightFarms  farming  agriculture  fresh_produce  voids  upside 
april 2013 by jerryking
Real estate players turn their eyes to hotels - The Globe and Mail
TARA PERKINS - REAL ESTATE REPORTER

The Globe and Mail

Published Tuesday, Feb. 12 2013
commercial_real_estate  real_estate  hotels 
february 2013 by jerryking
Mr. Cipriani Takes His Name to Wall Street Condominiums - New York Times
February 21, 2006
At Your Service
Mr. Cipriani Takes His Name to Wall Street Condominiums
By TRACIE ROZHON
property_development  commercial_real_estate  Wall_Street  real_estate  condominiums 
september 2012 by jerryking
10 Ways to Stumble in Commercial Real Estate -
November 12, 2006 | New York Times |By VIVIAN MARINO

(1) NO FINANCIAL PLAN
“The first step for investing in anything — whether it’s real estate or diamonds — is to have a plan, and your plan is based on your goals,”..... are you looking for a property that can be leased out, generating a monthly cash flow? Or, do you want to make a quick profit with a property that can appreciate in value after improvements?

You will also need to focus on a specific property type, based on personal interest and expertise. Mr. Cummings suggests taking on partners with “personal knowledge or specific talent dealing with this category of property.” He also recommends having an exit strategy,
(2) THINKING LOCATION ONLY
“It’s not location, location, location — it’s location, use and approval,” ......While finding a good location in a well-traveled corridor is important, he explained, you must also ensure that the proposed use for a property fits within zoning and deed restrictions as well as other local laws. That’s a crucial part of due diligence.

(3) NOT RESEARCHING A CITY
Even with zoning laws on your side, you may still be unable to move ahead with plans. “Some communities are getting impossible to develop,”.....Although a site may be properly zoned for such buildings, local planning boards might object that a design and scope of a project are incompatible with the area.

(4) SEEING ALL AREAS AS SIMILAR
“Real estate is a local singular market,” ......“What goes on in San Francisco may appear to be the same as what is going on in Chicago or Miami, but in reality it is not.” You need to explore an area’s demographics — learning, for instance, the average age of the residents and potential customers, as well as household income. And while you’re at it, check on the prevailing rents, along with vacancy rates and property taxes. Some of this information can be found by contacting the local government or Chamber of Commerce, and by talking with neighboring business owners.

(5) NO THOUGHT TO TENANT MIX
you can’t expect to draw much business unless you have the right mix of tenants, both within your property and in the neighborhood. An “anchor,” or a business with a history of successful performance, can help.

(6) MISCALCULATING COSTS
uncover hidden problems in a building — structural, mechanical or environmental. The seller can then decide to fix the problems or renegotiate the sales price........set aside a cushion for future repairs or improvements. (Even tenants with so-called triple-net leases, in which they agree to pay all the continuing operating expenses like property taxes, may need to have a property reconfigured to meet their needs.)

“Many people do not take the time necessary to quantify deferred maintenance — from an antiquated heating system to a leaking roof to holes in the parking lot,”

(7) MISCALCULATING RETURNS
To get an idea of your initial rate of return, or capitalization rate, review expenses and income for the most recent year.

Some brokers and investors base their calculations on occupancy rates at or close to 100 percent. But take into account the likelihood of vacancies,

(8) TAKING ON ONEROUS DEBT
commercial-property land, can come with very onerous terms!!

(9) DOING IT ALL YOURSELF
experienced investors typically have a group of experts in place, including brokers, engineers, lawyers, accountants and property managers, to help with conducting due diligence.

(10) PROCRASTINATION
What good is doing the research if you never put it to use?
anchor_tenants  commercial_real_estate  debt  demographics  exits  financial_planning  hidden  investors  IRR  land_uses  miscalculations  missteps  pitfalls  procrastination  real_estate  rules_of_the_game  zoning 
september 2012 by jerryking
A Crucial Test for a Commercial Broker -
March 12, 2008 | Businessweek | By Christopher Palmeri.

Now, White is telling his salespeople to find creative ways to drum up new business, from pitching environmental consulting services to existing clients to devising novel ways to finance deals. White knows a downturn is inevitable, but he hopes to cushion the blow. ...Its property managers now dispense green advice. Last year, CBRE helped shave $150,000 a year in electricity expenses at Phoenix Plaza, a pair of Arizona office buildings owned by General Electric's (GE) pension fund. CBRE installed energy-efficient lighting and cooling systems as well as sensors that adjust landscaping irrigation to reflect levels of rainfall. CBRE hopes to sell such expertise as consulting to other clients.
advice  business_development  commercial_real_estate  CBRE  diversification  economic_downturn  energy_conservation  green  management_consulting  property_management  novel  recessions  Wayne_Sankarlal 
september 2012 by jerryking
Have $50 Million? Come On In - WSJ.com
February 1, 2005

Have $50 Million? Come On In
Milstein Opens Private Bank In a Rare Start From Scratch; The Gold Rush for Ultrarich

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high_net_worth  financial_services  wealth_management  New_York_City  private_banking  commercial_real_estate  moguls 
august 2012 by jerryking
$100m fund eyes African property - FT.com
October 5, 2006 3:00 am
$100m fund eyes African property

By Jim Pickard,Property Correspondent
Africa  private_equity  real_estate  commercial_real_estate  farmland 
july 2012 by jerryking
Canary District looks beyond the Pan Am Games - The Globe and Mail
SHELLEY WHITE

The Globe and Mail

Published Monday, Jun. 25 2012

“We're going to create the most sustainable mixed-use development that the city has ever seen,” said Jason Lester, president of Dundee Kilmer Development Limited, the real estate developer leading the creation of the “Canary District” – named after the now-closed Canary Restaurant that operated from a 19th century Cherry Street building since the 1960s.

Their task is twofold. First, the Ontario government has given Dundee Kilmer the job of creating housing for 10,000 athletes and coaches for the 2015 Pan American Games. But the end goal goes far beyond a sporting event. The buildings will be converted and sold as condo and townhouse units, creating the foundation of a new downtown east side community that will knit together other communities such as St. Lawrence Market, Corktown and the Distillery District.
commercial_real_estate  Toronto  Canary_District  Waterfront_Toronto  19th_century  property_development  St._Lawrence_Market  Corktown  Distillery_District 
june 2012 by jerryking
Post-AIG, Greenberg Drives On - WSJ.com
June 15, 2007 | WSJ | By LIAM PLEVEN.
Mr. Greenberg: It hasn't changed. C.V. Starr & Co. had four [insurance] agencies. We obviously had to find new companies to represent, which we did -- didn't take very long to do that. We've now started another new general agency, in the health field. Then we have a Lloyd's syndicate that we started, and that syndicate also is represented in China. We're in the midst of forming a life- and general-insurance company in Bermuda.

In Starr International, we have an office in Hong Kong, an office in Shanghai and in Beijing, and [we're opening an office] in Russia.

Russia today is a different country than it was five, 10 years ago. The oil-and-gas revenues have changed the economics in Russia. There's more than a trickle-down effect to a middle class. Moscow's probably the most expensive city in the world. Every time I go there, it's more expensive. I may pitch a tent next time.

We started a commercial-real-estate business. We're looking at a consumer-finance business, and we're looking at a residential-mortgage business. When you start something, you're like a magnet. You attract other opportunities.

The vision I have is that we're going to be partly merchant bank and partly still in insurance. What is a merchant bank? A merchant bank, in my definition, is that you don't always invest to create profit like a private-equity firm and liquidate in five or six years. You may keep it in perpetuity, or you may sell it at some time down the road, five, 10, 15, 20 years. There are very few merchant banks left. Most have a quick trigger. I think we can have a longer-term horizon.
Second_Acts  insurance  entrepreneur  AIG  Hank_Greenberg  commercial_real_estate  merchant_banking  long-term 
june 2012 by jerryking
Cantor Head Looks to Build National Force - WSJ.com
April 17, 2012 | WSJ | By LAURA KUSISTO

Cantor Head Looks to Build National Force
With Grubb Purchase Completed, Howard Lutnick, Known for Rebuilding Financial Broker, Faces Real-Estate Hurdles
commercial_real_estate  Cantor_Fitzgerald 
may 2012 by jerryking
Toronto Wants to Lure People to Water - WSJ.com
March 6, 2012, 9:04 p.m. ET

Toronto Wants to Lure People to Water

By KAREN JOHNSON
Toronto  commercial_real_estate  property_development 
march 2012 by jerryking
Report On Business - The Globe and Mail
MARINA STRAUSS

RETAILING REPORTER

Last updated Wednesday, Feb. 08, 2012
Zellers  commercial_real_estate  Marina_Strauss 
february 2012 by jerryking
Pop-ups present tenant issues
Dec. 20, 2010 |Financial Post | Drew Hasselback.
If you're a commercial landlord, you may have wondered about granting space to pop-ups. They may broaden your shopping centre's product range, but they don't come with the polish you expect from your long-term tenants. The rapid appearance and exit of pop-up stores at holiday times raises some unique legal issues and requires a frank discussion between the landlord and the tenant before any rental deal is signed. Each side needs to understand the other's objectives, and those understandings should be spelled out in writing to prevent future conflicts.
kiosks  retailers  shopping_malls  pop-ups  short-lived  clarity  commercial_real_estate  landlords 
december 2010 by jerryking
Corner Office - Get a Diploma, but Then Get a Passport, Says Capri Capital’s Chief - Question - NYTimes.com
July 31, 2010 | New York Times | This interview with Quintin
E. Primo III, co-founder and chief executive of Capri Capital Partners,
was conducted and condensed by Adam Bryant. Capri is a real estate
investment and development firm based in Chicago.
Chicago  CEOs  real_estate  HBS  leadership  adversity  advice  career_paths  commercial_real_estate 
august 2010 by jerryking
The Grand ManhattanEntrances of 'Mad Men' - WSJ.com
JULY 21, 2010 Wall Street Journal | By MARC MYERS. The
Impeccably Crafted Style of 'Mad Men' Isn't All a Thing of the Past. You
Can Find It in These Landmarks of 1960s Design.
Mad_Men  New_York_City  '60s  architecture  commercial_real_estate  design 
july 2010 by jerryking
Santa Monica Mall Gets a Makeover - WSJ.com
JULY 5, 2010 | Wall Street Journal | By KRIS HUDSON. Kill the Mall's Main Roof, Add a Big Plaza
commercial_real_estate  shopping_malls  California  Santa_Monica  travel  retailers 
july 2010 by jerryking
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