News and Events
The Great Reckoning
After going through a whirlwind couple of years, the retail real estate business is now winding down and everyone in the industry is taking stock of the aftermath.
May 25, 2010 Real Estate Forum Debra Hazel
If the retail real estate business over the past two years were an amusement park ride, it would currently be winding down from the big plunge. That is, everyone on the ride is still a touch winded but on the mend, say industry observers, particularly those looking to lease in urban locations. Store closings were fewer than expected, store openings are slowly picking up and retailers and landlords are working together to create deals. Even the CMBS market, which both spurred growth and contributed mightily to the crash, is coming back.
“Most people straightened themselves out in 2009,” says Ivan Friedman, president and CEO of New York City-based consultancy RCS Real Estate Advisors. “The major bankruptcies were an anomaly; they were weak companies to begin with.” Other retailers, he adds, pruned their portfolios, strengthening their bottom lines.