Real Estate Advisor Law Blog

Real Estate Advisor Law Blog

Category Archives: Retail Industry Issues

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Is There a Walmart in Your Future ?

Posted in Development Issues, Leasing Issues, Retail Industry Issues
 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:… Continue Reading

Real Estate and the Final Four !

Posted in Retail Industry Issues
 The NCAA men’s basketball tournament is consuming a lot of bandwith in everyone’s offices.  Perhaps even slowing down the speed of emailing all of those contracts, leases and loan documents around the country.  Have you ever wondered if there is a connection between the real estate industry and the NCAA Tournament ?   We found… Continue Reading

Baby Boomers Start to Retire

Posted in Retail Industry Issues
2011 is the year when the Baby Boomers begin to turn 65 years old.  This trend will continue for the next twenty years.  How is the Real Estate industry going to respond to this demographic reality ?  The impact on society is enormous: housing, transportation and work force issues abound.   Will housing prices be… Continue Reading

Grocery Store Anchored Strip Centers

Posted in Retail Industry Issues
A recent article in REJournals.com noted that the grocery store anchored strip center remains a strong performing retail category. In all geographic markets, there is an over abundance of retail space. There are several reasons for the excess space:             1)  Developers overbuilt with the availability of easy financing.               2)  The economy has forced… Continue Reading

Another Reason To Consider a Flat Tax

Posted in Leasing Issues, Retail Industry Issues, Tax Issues
Landlord’s have gone to fixed CAM to reduce administrative expenses and disputes with their tenants. The government could accomplish the same by going to a flat tax – no need for complicated tax regulations that create unintended consequences; no need for intrusive audits where the government is at odds with its constituents; in fact maybe… Continue Reading

Close Your Eyes and Imagine……

Posted in Retail Industry Issues
The retail industry is changing, or depending upon your current situation, the retail industry has already changed. The days of throwing up a center on every open suburban vacant parcel are long gone and likely not to return anytime soon. Just knowing how to build a retail center is no longer enough. What can you… Continue Reading

Retail Trends We See

Posted in Retail Industry Issues
Toys R Us is leasing a large number of sites on a temporary basis: smaller stores and only for the Christmas season. Temporary leasing might be a trend to capitalize on, especially where you have vacant space in a decent geographic market.  And if you can combine it with a different, complimentary seasonal concept (ice cream… Continue Reading

ELIMINATING OFF-BALANCE-SHEET ACCOUNTING OF LEASES

Posted in Finance Issues, Leasing Issues, Real Estate Tools, Retail Industry Issues, Tax Issues
  Remember Enron and off-balance-sheet accounting scandals? The efforts to clean up these accounting practices are still in the works and are about to hit the world of commercial real estate—arguably at the worst possible time. The Financial Accounting Standards Board (FASB) (which is endowed with the power to decide U.S. generally accepted accounting principles) and its… Continue Reading

Some Good News About Empty Big Boxes

Posted in Leasing Issues, Mixed Use Development Issues, Retail Industry Issues
The current economic downturn and the corresponding contraction of the retail sector have resulted in a glut of vacant “big-box” retail stores in shopping centers across the country. Vacant big-box spaces pose special challenges for landlords and communities. While the number of vacant big-box spaces is daunting, there are glimmers of hope as landlords and… Continue Reading

Vacant Big Box Retail Stores

Posted in Mixed Use Development Issues, Retail Industry Issues
The current economic downturn and the contraction of the retail sector have resulted in an increasing number of vacant “big box” retail stores in shopping centers across the country. A “big box” is a freestanding building occupied by a single retail tenant that contains between 20,000 to 200,000 square feet of space and is surrounded… Continue Reading

Supreme Court Rules Beach Additions Not Compensable Takings

Posted in Environmental Issues, General Legal Issues, Litigation Issues, Retail Industry Issues
Truckloads of sand will begin cascading across hurricane-battered beaches along the Destin and Walton County shorelines, thanks to a recent 8-0 decision by the Supreme Court. Coastal homeowners originally sued Florida arguing that the Beach Erosion Control Program (BECP) would cause the value of their homes to decline, turning their “oceanfront” property into “ocean view”… Continue Reading

Well Done Kayla !!!

Posted in Retail Industry Issues
Congratulations to Kayla Ashley daughter of Jennette Ashley, one of our real estate paralegals, for the recognition of her work on behalf of the Ronald McDonald House near Cincinnati Children’s Hospital. The local Fox TV affiliate Channel 19 recognized Kayla’s volunteer work during their Pass the Cash spot.  Click on the link to watch. This… Continue Reading

Audit Those Leases

Posted in Finance Issues, Leasing Issues, Retail Industry Issues
The typical co-tenancy clause provides that if occupancy at a shopping center falls below a certain level and/or certain other key tenants close, the tenant gets rent relief and at some point the right to terminate its lease. In the current retail environment, all sophisticated tenants demand some sort of co-tenancy protection.  Landlords have generally… Continue Reading

HOUSING PRICES MAY NOT HAVE BOTTOMED OUT JUST YET

Posted in Retail Industry Issues
Since early 2009, Housing prices have stabilized and valuations and affordability of homes have improved. This stabilization is primarily attributed to government housing policies, such as the home buyer tax credit, the federal government’s purchase of mortgage-based securities, and temporary mortgage modifications through the Home Affordable Mortgage Program. However, many economists believe that the housing… Continue Reading

Mixed Use Centers – How Do You Allocate CAM?

Posted in Leasing Issues, Mixed Use Development Issues, Retail Industry Issues
Almost all new build shopping centers are mixed use – they include some combination of office and residential in addition to the retail space. Elizabeth Hamilton, in house Real Estate Counsel at Office Depot, recently reminded me of the special problem this presents in allocating CAM, taxes and insurance. Some portion of each must be allocated to… Continue Reading

MORE SNDA THOUGHTS….

Posted in Leasing Issues, Retail Industry Issues
An interesting situation  has come up several times just recently (these issues come in droves – after never confronting the issue for a really long time, all of a sudden you get the same issue coming up again and again): Tenant relocates to new space in the same center;  Landlord and Tenant amend existing lease… Continue Reading

We Are All Our Brother & Sister’s Keeper (Lessons of Right & Wrong)

Posted in Ethical Issues, General Business Issues, Retail Industry Issues
Our good friend, Abe Schear, Chairman of the Leasing Practice Group at Arnall Golden Gregory in Atlanta, pens a newsletter called Baseball Digest(able).    Abe’s January issue is a powerful piece of insightful writing which merits all of our attention.   Since many of the deals in the real estate industry occur as a result… Continue Reading

KELO REVISITED

Posted in Development, Development Issues, Legislative Update, Retail Industry Issues
  In 2005 the United States Supreme Court in Kelo v. City of New London upheld the actions of the City of New London, Connecticut (the “City”) in forming a non-profit corporation to redevelop the Fort Trumbull area of the City. In order to capitalize on Pfizer, Inc.’s (“Pfizer”) private development of an adjacent research facility,… Continue Reading
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