CPN - December 2008 - (Page 8)

RETAIL MARKET INTELLIGENCE Circling the Drain Retailers Try to Stay Afloat; REITs Go Through Wringer By Paul Rosta f a real estate Rip Van Winkle were to awake from a two-year nap,he would rub his eyes in amazement at the changes in the retail world. Familiar names like Linens ’n Things, Tweeter, Mervyn’s and Levitz are gone or about to disappear. Others, like Circuit City Stores Inc., are declaring bankruptcy and shutting down scores of stores in a bid to stay afloat. New retail construction sites are now few and far between.And many centers that once teemed with shoppers are much quieter than they were two years ago. The worse news, of course, is that there is little to suggest that better times will arrive anytime soon. For the bulk of 2009, retail real estate professionals will face a now familiar list of challenges, from rising joblessness and increasing home foreclosures to unsettled capital markets. As the most promising shopping season of the year comes and goes, it will soon become clear how much consumers will continue to tighten their belts.“Holiday retail sales are going to be very, very critical,” said Michael Dee, executive vice president of business development for Staubach Retail Services Inc. I Consumers may pleasantly surprise the pundits, but a variety of studies point to bleak prospects. In a survey released last month, 65.7 percent of retail executives told the International Council of Shopping Centers that they expect this holiday season’s sales growth to be lower than it was last year, and another 20 percent forecast that 2008 sales growth will be much lower than that in 2007. Only 2.9 percent projected growth to be higher this year than the growth the executives experienced in 2007. A year ago, respondents turned in much more optimistic forecasts: At the time, 36.7 percent expected an increase over 2006’s results. If those predictions come true, the retailer bankruptcies and store closings that are spreading nationwide will only increase. “What is a little troubling is that there have (already) been store closings, even preholiday season,” said Steven Marks, managing director & head of REIT analysis for Fitch Ratings. And Dee warned that a poor holiday season would especially threaten those regional and local retailers that are already struggling to hang on. Even an unexpectedly successful holiday season will leave owners and retailers with their work cut out for Your real estate deserves real management. Count on a CPM® professional to deliver real results. CPM ® For expert management of your real estate portfolio, turn to a professional who has earned the CERTIFIED PROPERTY MANAGER® (CPM®) designation. A CPM® has: • Demonstrated experience in building value • Pledged commitment to the highest ethical standards • Proven expertise in maximizing returns Or, contact us at: IREM Headquarters 430 North Michigan Avenue, Chicago, Illinois 60611 Phone: (800) 837-0706 (312) 329-6000 Fax: (312) 338-4736 E-mail: custserv@irem.org Entrust your investments to the best in the business. Partner with a CPM®. To ﬁnd a CPM® in your area, visit www.irem.org/CPM 8 COMMERCIAL PROPERTY NEWs • December 2008 • www.cpnonline.com http://www.irem.org/CPM http://www.irem.org/CPM http://www.cpnonline.com

Table of Contents Feed for the Digital Edition of CPN - December 2008

CPN - December 2008 Contents Starting Line Retail Data/Analysis Conferences Boston Market Profile Finance International Property Management

CPN - December 2008

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