homesmillbrae.com » Record Highs http://homesmillbrae.com Thu, 20 Oct 2022 03:48:43 +0000 en hourly 1 http://wordpress.org/?v=3.1 Guess What’s Replacing Stores in Your Local Mall? http://homesmillbrae.com/1749/guess-what%e2%80%99s-replacing-stores-in-your-local-mall/ http://homesmillbrae.com/1749/guess-what%e2%80%99s-replacing-stores-in-your-local-mall/#comments Fri, 05 Oct 2012 00:26:58 +0000 http://homesmillbrae.com/1749/guess-what%e2%80%99s-replacing-stores-in-your-local-mall/ Continue reading →]]>

285a4 shoppers california 200 Guess What’s Replacing Stores in Your Local Mall?

It was a one-two punch to retail malls: The increasing popularity of online shopping and the recession.

Demand for retail space is falling again after a brief recovery, according to a new report from Reis Inc. Strip malls are faring the worst, and consequently new construction in the space declined near record-levels during the quarter.

“With the economy and labor market continuing to struggle, consumer spending remains weak and inconsistent,” notes Reis senior economist Ryan Severino.

(Read More: JC Penney’s CEO On ‘The Rocky Road to Reinventing Retail’)

Regional malls, however are outperforming the neighborhood strip malls, with vacancy rates declining in the third quarter of this year. What may be helping some of these larger properties is an influx of big chain restaurants taking over retail space. Darden
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3166e realtime icon Guess What’s Replacing Stores in Your Local Mall?]  restaurants, which includes the Olive Garden, LongHorn Steakhouse and the Capital Grille, to name a few, is increasingly moving into retail mall space. Chipotle
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3166e realtime icon Guess What’s Replacing Stores in Your Local Mall?] is following suit.

The amount of mall space being leased by restaurants is rising steadily at 15.8 percent through August of this year, up from just over 10 percent in 2006, according to CoStar Group.

Percentage of Retail Leases Signed by Restaurants by Square Footage:

While vacancy rates are dropping from their record highs during the recession, according to Reis, mall owners are and will be increasingly challenged by the move to online shopping. That’s why the fundamental face of shopping malls is beginning to change; rather than just retail with a food court, malls are now becoming entertainment destinations.

“We have seen restaurant and what I’ll call ‘other entertainment venues’ drive that mall growth and malls have become a gathering place for people and the, Panera’s
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3166e realtime icon Guess What’s Replacing Stores in Your Local Mall?] of this world help make that happen,” says Bob O’Brien of Deloitte Commercial Real Estate.

So-called “entertainment retail centers” are now the focus of real estate investment trusts (REITs) like Entertainment Properties Trust
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3166e realtime icon Guess What’s Replacing Stores in Your Local Mall?], which has invested over $600 million in eight such centers, according to its website:

“Sometimes called ‘the new mall of the new millennium,’ entertainment retail centers attract a wide range of businesses because consumers have a wide and deep thirst for fun and rejuvenating leisure experiences… now also it’s dinner and shopping, dinner and ice-skating, dinner and bowling, dinner and miniature golf, or dinner and sports events on the tavern big screen with friends.”

(Read More: Why Brick-and-Mortar Stores Will Trump Online in End: CEO)

Higher end malls are seeing the biggest benefits of economic recovery and of higher end chain restaurants moving in. Mall owners want these tenants because the hope is they will drive traffic back to the retail surrounding them. Strip malls have a harder time, as patrons don’t always have to walk past another store to get to the restaurant.

SECTOR WATCH: U.S.-Based REITS

Questions?  Comments?  And follow me on Twitter @Diana_Olick

Guess What’s Replacing Stores in Your Local Mall?

Article source: http://www.cnbc.com/id/49288896?__source=RSS*blog*&par=RSS

]]> http://homesmillbrae.com/1749/guess-what%e2%80%99s-replacing-stores-in-your-local-mall/feed/ 0 Home Builders Hedge Their Bets on Housing Recovery http://homesmillbrae.com/599/home-builders-hedge-their-bets-on-housing-recovery/ http://homesmillbrae.com/599/home-builders-hedge-their-bets-on-housing-recovery/#comments Sat, 30 Apr 2011 03:41:29 +0000 http://homesmillbrae.com/599/home-builders-hedge-their-bets-on-housing-recovery/ Continue reading →]]> Page 1 of 2 | Next Page
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Several of the nation’s largest public home builders reported earnings this week, and I was struck by the way their CEOs spoke of the current state of housing, especially in what I’m sure were some very carefully crafted written earnings statements.

From D.R. Horton’s [ DHI 12.44  +0.34 (+2.81%) ] Donald Horton:

“Market conditions in the homebuilding industry are still challenging, with high foreclosures, significant existing home inventory, high unemployment, tight mortgage lending standards and weak consumer confidence. However, housing affordability remains near record highs, interest rates are favorable and new home inventory is still very low,” Horton said. “We continue to focus on providing affordable homes for the first-time buyer while having product available for move-up buyers, further adjusting our cost structure relative to our current sales pace.”

Translation: We’re still in the dumps, but we’re lowering prices, so come on and buy.

Pulte’s [ PHM 8.13  -0.11 (-1.34%) ] Richard Dugas: “Over the near term, we expect the industry will continue to face low levels of demand and that overall operating conditions will remain highly competitive.” Dugas then said he expects a return to profitability in the “back half of the year.”

Translation: Still bad, but it has to get better, right?

Ryland’s CEO didn’t weigh in on the earnings release.

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