Forbes Business Council’s Post

“The smart retailers haven’t stopped expanding. They know that if they wait, it’s only going to get more expensive.” Sure, but is this sustainable? As advisors we all need to be monitoring AUV's, construction costs and tenant pipelines to make sure that we are picking the right deals for our owners and occupiers. This article is very insightful but I am reminded of the industrial bubble in Southern California that is in various stages of bursting depending on the submarket. There is demand, and therefore deals, but we all need to be focused on making the right deals, not just closing. #icsc #retailrealestate #jllretail #orangecountyretail #southerncaliforniaretail #restaurantrealestate #retaildevelopment #jllretailOC https://lnkd.in/g5bbXdcR

In our latest alert, Travis Jeffries discusses the challenges and opportunities in reletting space vacated by major tenants. With major brick-and-mortar retailers like 99 Cents Only, Bed Bath & Beyond, and Party City all filing for bankruptcy since the beginning of 2023, and potentially more on the horizon, here are some important things to consider. #retail #cre #brickandmortar

Wondering about the future of brick-and-mortar retail? Hear directly from our CEO, Kevin McCrain, as he discusses key trends and strategies for success in the industry. Don't miss out on this insightful Q&A with WWD! #RetailTrends #ExpertInsights #proudemployee #brookfieldproperties

Broad Reaching Strategies for Maximizing Value in Retail Properties No matter the economic climate, the formula for creating value in properties will always be a retail property owner’s best friend. That’s why Broad Reach Retail Partners, LLC uses a multi-faceted approach that includes data-driven key performance indicators (KPIs) to drive their plans of action, strategic redevelopment and ongoing budget updates that optimize net operating income (NOI). “Through focused management, leasing and discipline, we create value, and we are able to return those dividends to our partners, properties and people,” says COO Mike Castellitto. “We have seen time and time again that those who are able to make changes, explore new ideas, methods and solutions can thrive.” https://lnkd.in/dhkMtq2a Sponsored by Broad Reach Retail Partners, LLC #cre #commercialrealestate #retail #shoppingcenter

Has this happened in your retail shopping center? With retail space being so scarce, tight labor conditions, and high costs, some tenants may sign ✍️ a lease and pay their rent but not open or choose to operate continuously. 📌 From the tenant perspective, this can make sense but there are implications for the landlord as well! Despite the tenant paying their rent, the center’s other tenants and the landlord will still be impacted by an opportunity loss: ▪️ Co-tenancy provisions can kick in ▪️ Loss of percentage rent revenue ▪️ Shoppers may be put off by empty space ▪️ A seemingly abandoned, shabby space can bring down the overall attractiveness of the center In this great article by Daniel Villalpando at Cox, Castle & Nicholson LLP, Daniel offers landlords the following remedies: ▪️ Give the tenant extra time to open before remedies take effect. ▪️ Require the tenant to at least open for one day. ▪️ Make sure the tenant is required to perform all of its other obligations under the lease. ▪️ Give yourself the right to “recapture” the premises. ▪️ Don’t let a tenant’s right to “go dark” impact the economics of your deal. Read the article here: https://bit.ly/3Q8pBqD #TSCG #CREtail #RetailStores #CRE #Retail

The Divergent Paths of J.C. Penney and Macy’s in Real Estate Strategy In the dynamic landscape of retail, the strategies that department stores adopt can be pivotal to their survival and growth. Two iconic players in the industry, J.C. Penney and Macy’s, have embarked on markedly different journeys when it comes to their real estate strategies. This divergence reflects their unique visions for the future and their responses to the evolving demands of retail. J.C. Penney - Anchoring the Malls: J.C. Penney has chosen to double down on its traditional role as a mall anchor. Despite the challenges faced by brick-and-mortar stores, J.C. Penney is steadfast in its commitment to the mall format. The company has announced a significant investment aimed at refreshing stores and integrating technological advancements. By the end of the year, J.C. Penney plans to revamp 200 stores, signaling confidence in the physical store as a cornerstone of the shopping experience. Macy’s - Embracing Flexibilit:y Contrastingly, Macy’s has taken a more flexible approach, experimenting with smaller-format stores located in strip centers. This shift away from the traditional mall anchor model is part of Macy’s broader strategy to adapt to the changing retail environment. Macy’s has announced plans to open as many as 30 smaller stores by the fall of 2025, which will sometimes involve closing a full-line store in the same market. Analyzing the Strategies: The strategies of J.C. Penney and Macy’s are informed by their respective positions and potential ownership. Macy’s, under the leadership of CEO Tony Spring, is repositioning to cater to a modern era where sprawling downtown locations are no longer the norm. Meanwhile, J.C. Penney’s approach is influenced by its acquisition by shopping center REITs Simon Property Group and Brookfield Properties, which has reinforced its mall-centric strategy. The Future of Department Stores: As the retail sector continues to evolve, the paths chosen by J.C. Penney and Macy’s will be closely watched. Their differing strategies highlight the broader question of the department store’s role in today’s retail landscape. Will the mall anchor persist, or will flexibility and adaptation pave the way for the future?

Wondering about the future of brick-and-mortar retail? Hear directly from our CEO, Kevin McCrain, as he discusses key trends and strategies for success in the industry. Don't miss out on this insightful Q&A with WWD! #RetailTrends #ExpertInsights #proudemployee #brookfieldproperties #retail

In the last couple of years, retail property owners have encountered a notable shift in their perspective regarding tenant bankruptcies, when those stores are well located and the existing rent is below market. Contrary to their previous concerns of spaces remaining vacant, they are now starting to view these bankruptcies as an opportunity to adjust rental rates to reflect current market conditions—a practice known as mark-to-market. This shift in mindset is a direct result of a significant lack of new retail development since 2010, coupled with a nationwide real estate market that shows limited vacancy. Consequently, when vacancies arise due to tenant bankruptcies in prime locations, financially robust tenants are eagerly seizing the chance to expand their presence in the retail sector.

Keeping an eye on the home store retail space. https://buff.ly/4b4rZap #HomeRetail #DesignBusiness #DesignTrends https://buff.ly/30J4PGQ

Interesting read on the current state of retail spaces! For every 2 "retail apocalypse" articles out there, there's 1 like this. According to recent data, nearly half of all retail spaces have secured a tenant within just three months of listing in the past year. This is a significant improvement compared to the past decade, where it took an average of nine months to achieve the same level of leasing activity. Check out the full article here: [Read more](https://lnkd.in/efPfY2sa) #RetailRealEstate #RetailTrends