Shawn Massey, CCIM, SCLS

Weekly CRE and Retail Article Round-Up! November 1st, 2012

I hope you enjoy this week’s articles!

Exclusive Use Rights – Say What You Mean; Mean What You Say!

New York’s Real Estate Icons

Jumpstart Your CRE Blog with an Editorial Calendar

BRICKS IN A WALL” for a Tenant’s Foundation of Knowledge

Somebody Has To Say It! So Of Course I Do And Record It!

Chicken or the egg: Who takes the lead on incremental suburban retrofitting?

The Walkable City

Bankruptcy judge rules Memphis can take over Beale

Bankruptcy judge rules Memphis can take over Be

Rise of House Flipping Focus Of Seminar

10 Things Every Buyer Needs – To Close A Commercial Real Estate Loan

United States Construction Outlook – Fall 2012

-Mobile Cell Towers Sold-How It Affects You

More small towns thinking big

Cell Site Termination: What Are Your Client’s Options?

Buy Into Flexible Teamwork to Ensure Success

From the Desk of Garrick BrownTerranomics   Retail Newsline
Week Ending October 28, 2012
No doubt that how the election plays out   will help to determine how the fiscal cliff is dealt with. The good news is   that there appears to be a greater sense of the urgency of this matter   emerging from business leaders. This week, a group of more than 80 CEOs from   some of the nation’s top corporations released a statement urging the   President and Congress to work together to reduce the federal deficit. The   statement declared that any fiscal plan   “that can succeed both financially and politically” has to limit   the growth of health-care spending, make Social Security solvent and   “include comprehensive and pro-growth tax reform, which broadens the   base, lowers rates, raises revenues and reduces the deficit.” In other   words, this group embraced the position held by the overwhelming majority of   economists all along, that the deficit is simply too great to be tackled by   spending cuts alone.

The hope is that   the stance of this group (which included CEOs from Aetna, Alcoa, Allstate,   Bank of America, BlackRock, Boeing, Caterpillar, Cisco, Corning, Delta, Dow,   etc.) will help to pave the way for a political environment in which some   sort of compromise is possible. Clearly, the looming election will play a   huge role in how this issue and that of the pending fiscal cliff play out.   The real question ultimately is whether a Republican Congress would finally   be willing to cut deals with President Obama should he win a second term.   There is no doubt that they would work with a Romney administration but they   have refused to compromise for most of the past two years since reclaiming   the House of Representatives. What happens in that scenario is critical. And   this statement from the nation’s top CEO’s clearly sends the message that   playing chicken with the economy to earn political points isn’t going to win   much support on Wall Street. And that is a good thing. Because the greatest   challenges to this economy remain policy driven and avoidable.

Regardless, though you can expect the fiscal cliff to dominate political news   coverage starting on or about November 8th, don’t expect anything to   be done about it until the new Congress is in place in January. Though   stopgap measures could be taken in the meantime, none are likely. The biggest   damage from the fiscal cliff next year will be the $280 billion that the   expiring Bush tax cuts will take out of consumer’s hands next year. The   Republican Congress would like nothing more than to renew these, as is, but   the Obama administration is reportedly in favor of reinstating most, but not   all, of these cuts. This clearly would not be an issue with a Romney   administration, but that wouldn’t get done until next year. Meanwhile, the   Republicans in the House would rather let those cuts expire before they would   vote on any compromised version that could be labeled a tax increase. Should   Obama win a second term and a compromise could be reached on this, the House   would likely let the current cuts expire so that they could then vote a new   “tax cut” back into place.

The ridiculous machinations of Washington DC aside, pressure from big   business to get our politicians to work together pragmatically can’t be a bad   thing. Especially since one of the other big stories this week was that new   home sales had reached their highest level in 2 ½ years. This follows last   week’s news that housing starts had hit a four-year high. Housing is turning   and, so long as the fiscal cliff is dealt with, will continue to accelerate   in its rebound next year. There have been two primary reasons for the anemic   pace of this recovery. The first is that this was a deleveraging recession in   which virtually the entire economy was overleveraged and overvalued.   Unfortunately, all of those bills came due at the same time. But the second   reason is that housing has not been a participant in this recovery. Housing   usually pulls us out of recessions, but clearly this sector had its own   severe deleveraging to deal with. All indicators are that the market has   turned and, since so many have held off making real estate moves for so long   (would-be buyers waiting for the market to hit bottom), there is a very good   chance that pent-up housing demand (combined with record low interest rates)   will help to give housing a sharp bounce in the coming year. Assuming that   the policy issues that currently threaten to derail growth are dealt with, we   should start to see housing driving economic growth and adding points to GDP   as early as next year. So, the question of accelerated economic growth in   2013 versus recession could very well come down to whether our lawmakers will   be willing to make compromises and work together in January… or if they will   choose to just grandstand, crash the economy and point fingers.

– Garrick H. Brown

Garrick Brown
Research   Director, Terranomics
Terranomics Top FiveCEOs   call for spending cuts, more tax revenue to reduce deficit
Wall Street Journal 10.25

New-home   sales reach highest level in more than 2 years
Washington Post 10.24

Lackluster Season Expected for   Several Shopping Categories; Toys, Video Games, Electronics
Time 10.23

Consumers are unfazed by   “fiscal cliff” talk, data show
Washington Post 10.22

Investors are cheered by Fed’s   calm reaction to rising economy
Washington Post 10/22

The Big Picture

Survey: 90% of retailers to offer some form of free   shipping for holiday
Chain Store Age 10.24

Deloitte holiday survey: Holiday shoppers’ spirits   bright
Chain Store Age 10.24

Mid-sized markets projected to   have big-city retail growth 10.24

Retailer Roundup

Nike opens direct-to-consumer retail store in US capital 10.27

GameStop   launches new holiday store concept in US malls
Chain Store Age 10.26

Cabela’s   income up 28%; to accelerate expansion of smaller-store format
Chain Store Age 10.25

GameStop   to debut new GameStop Kids stores
Dallas Business Journal 10.25

American Eagle CEO Outlines Plan for Expansion Nationwide;   more growth in Midwest and West, add as many as 80 new outlet stores over   next few years and replacement of 20 to 30 weak locations annually with   stronger locations
Trib Live 10.23

Nike confirms Memphis expansions
Memphis Business Journal 10.23

New CEO at Tuesday Morning says stores need a cleanup
Dallas Morning News 10.22

Grocery Grab Bag

Clock Could Be   Ticking on Tesco’s Fresh & Easy

  Convenience Store News 10.26

Pilot Flying J Surpasses   650-Store Milestone
Convenience Store News 10.22

The   Restaurant Review

Seasons   52 will open 11 restaurants through 2013
Orlando Business Journal 10.25

Robeks Smoothies Races Down the Growth Track Once Again
QSR 10.25

Blaze Pizza Fires Up National Growth Plans
Restaurant News 10.24

Five Restaurant Chains Moving Beyond Mall Food Courts
Nation’s Restaurant News 10.24

Chloe’s Soft Serve Fruit Co.   Announces New Strategic Partners And National Expansion Plans
PRNewswire 10.23

Krystal   to celebrate 80 years with 25-cent burgers
Atlanta Business Chronicle 10.22

Regional News and Development Notes

Bankruptcy/Closure WatchBuild-A-Bear Workshop posts Q3   loss; to close 50 to 60 stores
Chain Store Age 10.25

REIT/Investment OutlookT
Globe Street 10.26

LaSalle   buys 100 Oaks Mall in Nashville
Nashville Business Journal 10.26

Federal Court Refuses to   Enforce Majority of Winn-Dixie Claims Related to Exclusive Use Violations

Why Do We Ask For Insurance In The First Place? redesigned: MEMfix swarms to Crosstown

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Shawn Massey, CCIM, SCLS is a partner with The Shopping Center Group a 3rd party retail real estate advisory firm in their Memphis office, an adjunct professor in the graduate real estate program at The University of Memphis and a co-founder and Chairman of the Board for the Memphis Business Academy charter schools (K-12th grade) in the Frayser area of Memphis.  

For all your retail real estate needs (tenant representation, landlord representation and property, investment & land sales) I hope that you will choose The Shopping Center Group and me to represent you and your business.  We understand that representation is a privilege and that you have a choice!

The opinions expressed in this post are entirely my own.  They should not be considered the opinion of The Shopping Center Group, LLC in which I am associated.

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