Late-Cycle Real Estate Investing Has Done a 180 1
By: Jeff Dervech - March 14, 2019 Late-Cycle Real Estate Investing Has Done a 180

The current real estate cycle is considered to be in the later innings of the baseball game with some calling it a post 7th inning stretch and others describing it as long in the tooth, more closely resembling a game in extra innings. One thing is for certain, the back end to this real estate cycle is much different than the lead-up to the 2008 financial crisis. Overall leverage and lending practices are much more...

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Dollar Tree to Renovate 1,000-plus Family Dollar Stores; Close Up to 390 Others 2
By: Jeff Dervech - March 11, 2019 Dollar Tree to Renovate 1,000-plus Family Dollar Stores; Close Up to 390 Others

Dollar Stores continue to grow and evolve! Dollar Tree, which has over 7,000+ stores and owns Family Dollar with over 8,000+ stores, announced a commitment to renovating 1,000 Family Dollar units in the coming year. The plan calls for the company to rebrand 200 Family Dollar stores to the Dollar Tree banner and completely close approx. 390 Family Dollar units across the country. The company announced its 4th quarter results from March 6th, 2019 with...

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What Will Happen to All of the Vacant Sears/Kmart Boxes? 3
By: Jeff Dervech - March 7, 2019 What Will Happen to All of the Vacant Sears/Kmart Boxes?

What will happen to the hundreds of shuttered Kmart and Sears locations around the country? The retail locations formally occupied by these tenants will be repurposed or redeveloped to meet current market demands, with the exact use or concept to be dictated by the individual trade areas of which these locations lay. Most of these former Sears and Kmart boxes are old and functionally obsolete, ranging between 100,000 – 200,000 SF and in many instances...

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New Grocery Store Business Coming from Amazon? 4
By: Jeff Dervech - March 4, 2019 New Grocery Store Business Coming from Amazon?

Amazon interested to open a new grocery store model separate from its Whole Foods Concept. The intent was that Amazon wanted to enter the grocery business by way of its Whole Foods acquisition, however their desire appears to exceed purely as a reformat and transformation of just that grocery brand alone. Their recent efforts as reported by the Wall Street Journal includes the plans of opening a grocery store in Los Angeles this year, with...

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Strip Malls: The Least Glamorous Segment In Retail Is Among The Sector’s Strongest Performers 5
By: Jeff Dervech - March 2, 2019 Strip Malls: The Least Glamorous Segment In Retail Is Among The Sector’s Strongest Performers

E-Commerce Resistant! Strip Centers continue to be a desirable asset class for investors to own. The shopping center tenant mix is usually composed of more internet resistant and service-based uses, concepts from restaurant to medical to daily service needs. The locations of these properties traditionally are in the middle of neighborhoods and can conveniently serve the local population. Strip Centers with good signage, parking, and accessibility will continue to be in high demand. Why is...

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NRF study says consumers shop at discount retailers regardless of age or income 6
By: Jeff Dervech - February 27, 2019 NRF study says consumers shop at discount retailers regardless of age or income

Everyone likes a bargain regardless of age or income! Majority of U.S. consumers are driven by value and have remained price-conscious shoppers throughout time, regularly visiting discount retailers to seek out a bargain. Regardless of age, looking for the best price remains to be a habit in consumers of almost every demographic group. The art of a steal, is what drives this desire regardless if the consumer is capable of affording to shop elsewhere. The...

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CRE Investors can still profit from Retail Real Estate – If they stick with Service-Oriented Tenants 7
By: Jeff Dervech - February 19, 2019 CRE Investors can still profit from Retail Real Estate – If they stick with Service-Oriented Tenants

Real estate will continue to be a safe harbor for investors in our time of extreme uncertainty as we move into the future. As investors seek out new investments to deploy capital, they should seek out retail investment properties that include service-oriented uses, experimental retail, and internet resistant concepts as they are more likely to provide healthy, risk adjusted returns. With so many sources of potential market volatility threatening investors, U.S. real estate remains a...

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Thriving “Self-Care” Sector Fuels Demand for Strip Center Space 8
By: Jeff Dervech - February 11, 2019 Thriving “Self-Care” Sector Fuels Demand for Strip Center Space

Fitness and Self Care Concepts continue to warrant strong demand for space in strip centers. The “self-care” sector which includes wellness, health, fitness, and beauty is a growing business as more and more people are investing their discretionary income into themselves. Majority of these self-care tenants are offering memberships instead of a pay as you go model which bodes well for shopping center owners, adjacent tenants, and retail foot traffic at these properties as it...

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