Retail Market Hits Bottom?
The retail real estate market has hit bottom, and retailers are starting to expand again, according to the experts who appeared on the most recent episode of the Commercial Real Estate Show. For companies willing to add locations, there are good real estate deals to be had.
“There are still pockets of weakness going forward, but my feeling is that the worst is most likely already behind us,” Ryan Severino, a senior economist at Reis, told me during Saturday’s show, which was upbeat and fun. (We had a few laughs at Justin Bieber’s expense, even as we talked serious commercial real estate.)
Severino went on to say, “I would characterize the environment as still challenging, but we’re not seeing the massive deterioration we once saw in the sector.”
Paul Gwin, a Blimpie franchisor for the state of Georgia and guest on the show, said his company is promoting growth. “We’re striving in the next three years to get to 200 locations in Georgia,” Gwin said. In an effort to reach its goal, Blimpie has implemented the Blueprint 47 plan, which reduces franchise fees from $18,000 to $47 for veterans.
Guest Jon Neville, a partner at law firm Arnall Golden Gregory, said national retailers should take advantage of a more tenant-friendly market. “Developers want to get in their centers the best tenants possible,” he said. “If it means making some concessions to get a national brand in there, they are willing to do that,” he said.
Bob Kane a retail tenant rep on the show shared the expansion plans of several national retailers. He said the time to expand and secure good locations is now, while vacancy is high and tenant friendly deals are still available.
Do you agree? Let us know what you are seeing on the retail real estate landscape. Also, if you want to hear more from our guests, the retail show is available for download.
We’ve got another great Commercial Real Estate Show planned for Saturday, April 2 airing nationally at 10 a.m. EST at www.CREshow.comand on Biz 1190 in Atlanta. The office showwill include a national office update from Co-Star, as well as a focus on office tenant/user strategies. Guests will include Chris Macke, Senior Strategist with Co-Star, Andrew Zezas, president of Real Estate Strategies Corporation; Philip Skinner, a partner at Arnall Golden Gregory; and Rick Ferguson, a vice president in the corporate office services group at Bull Realty.
Michael Bull, CCIM
Commercial Real Estate Show