Some Retailers Won’t Survive the L.A. Closures
GlobeSt.com
Tag: globest.com
Net Lease Opportunities in Difficult Times
GlobeSt.com
A creditworthy tenant with a certain degree of correction-resistance in its marketing strategy is a fairly sure bet to hedge against the vagaries of the greater market.
The coronavirus news gets scarier every day as the spread of the disease worsens. Investors have taken notice, and the stock market reflects it. But those of us who have been in the business long enough, know that the long-game is the thing.
…
The Real Reason So Many Stores Are Closing
globest.com
If people are shopping differently today, and they are, it is not to the exclusion of brick-and-mortar venues, but rather to those brands that have not been able to think in an omnichannel strategy of bricks-and-clicks working together.
Excuse me while I step outside of my normal role in this space of focusing solely on the net lease market. Because there is a dynamic impacting all of retail—the general market as well as net leased retail—that needs to be addressed, namely, the myth of a retail apocalypse.…
Net Lease Investors Remain Confident in Q3
GlobeSt.com
Despite the specter of trade wars and a global economic slowdown, net lease investors bought in Q3 2019, showing confidence in the sector and economy. However, the US economy bears watching, especially in light of another Federal Reserve interest rate cut.
Three months later, the story is different. During the third quarter, cap rates ramped up by 16 bps, from 6.41% to 6.57%.
An increase in cap rates can mean more buyers are in the market, eager to take advantage of lower price points. This is supported by our transactional data, which posted 544 completed deals. Even in the face …
The War Between Amazon and the Dollar Store Sector
GlobeSt.com
How does the online giant expect to break into one of the busiest sectors for buyers?
As we continue to grow into a digital age, we see more and more retailers developing their online presence to have a wider reach with consumers around the world. This is how Amazon become the shopping behemoth we know today. As a result, different brick-and-mortar stores struggle to create a business plan that addresses Amazon’s competition and eventually fall to the wayside. One sector, however, has not seemed to be taken aback from this competition—the Dollar Store sector.…
Net Lease Investors Take a Hard Look at CRE Fundamentals
GlobeSt.com
Calkain’s Q2 Net Lease Overview shows investors taking a hard look at real estate fundamentals, even as property sales continue their increase from the first quarter of 2019.
In analyzing report metrics in our Q2 2019 Net Lease Overview, we noted a focus on fundamentals, a bump in sales activities, and third, a three-sector impact. Let’s explain the third point first.
Q2 numbers were influenced mainly by the automotive, big box, and dollar store sectors; all three types experienced a jump in sales, though their cap rates differed.…
Delving into the Discount Dollar Retail Sector
GlobeSt.com
To net lease investors, discount dollar stores offer passive cash flow, thanks to long-term leases (averaging 10-15 years) and credit-worthy tenants.
Travel through a small town or the outskirts of a larger city, and you’ll likely pass by the local discount dollar stores. Whether those stores boast the green sign of Dollar Tree, or the yellow-and-black General Dollar signage, they offer aisles of everyday goods, ranging from beauty products, to cleaning essentials, to food, all within a 10,000-square-foot space.
To net lease investors, discount dollar stores offer passive cash flow, thanks to long-term leases (averaging 10-15 years) and credit-worthy tenants. …
Connecting Dots Between Tariffs and Retail Space
GlobeSt.com
While there can be ties between higher import costs and commercial retail space, the relationship isn’t as clear-cut, or black-and-white, as it might seem.
…
The Fed, Interest Rates and Property Values
GlobeSt.com
How will any Federal Reserve action impact the cost of capital and cap rates? Jonathan Hipp takes a closer look in this EXCLUSIVE column on the subject.
In March 2019, the Federal Reserve announced it would leave the key interest rate unchanged, bringing to a halt the hikes it had begun in late 2015. In the same announcement, the Fed forecasted one rate hike in 2020, and stated they will stop reducing their bond portfolio by fall 2019. The Fed opted to take a hands-off approach to the federal funds rate, due to a forecasted slowdown in the global economy.…
Big Tech Looking for Retail Spaces
GlobeSt.com
Opening brick and mortar locations could be the beginning of a larger trend being led by Amazon and Google.
…View our Sale-Leaseback Service Line
Looking to Sell?
Need to Contact Our SLB Experts?
