Is There a Walmart in Your Future ?
Walmart has opened its supercenters in many if not most urban and rural communities. Where do they go next ? With the over abundance of strip store space just about everywhere Walmart has many options. Walmart is embracing the concept of 'in-flll" with three concept store formats with which they are experimenting:
- Walmart Express: 15,000 square foot small store concept with a variety of product assortment;
- Walmart Market: 25,000-70,000 square foot grocery and home goods focused stores;
- Walmart on Campus: 3,300 square foot stores with product assortments geared to the needs of students (cross between a Walgreen's and a Staple's).
Expect to see Walmart and its competitors rolling out stores as they fine tune these concepts. Will communities embrace these stores or tighten zoning and use rules and regulations ? As we have written in prior posts, retail is going to re-tool and re-define itself; developers and lenders take note.
Earlier this month, the US Congress voted to repeal certain new 1099 reporting requirements that had many smaller landlords in this country crying foul. In essence, expanded 1099 reporting requirements were to take place under the health care reform laws in an effort to raise underreported income. The net effect would have been to impose upon all taxpayers receiving rental income (i.e., all landlords) an obligation to issue a 1099 to the IRS and to any contractor who provided in excess of $600 of service to the taxpayer relative to the rental income. While this may not have been a burden for a commercial landlord, everyone with a two-family, vacation rental, or college student renting a spare bedroom had reason for concern. Elimination of this burdensome reporting requirement comes as some good news in an otherwise still rebounding segment of our economy.
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I then tried to explain to him that this was not a case of the Tenant trying to take advantage of a down market, or exploiting some perception of leverage. Rather, this retailer was different from other retailers when considering their product mix and customer base. And so it was a special business issue, not trying to take advantage; and I meant it !
