Archive for April, 2017

Looming U.S. Retirement Crisis Will Impact Real Estate

Within a decade the U.S. will face a retirement crisis. The percent of workers covered by a traditionally defined benefit pension plan that pays a lifetime annuity has declined from 38% to 20%. The percentage of workers in the private sector whose only retirement is a defined pension plan is now 10%, down from 60% in the early 1980s. A staggering 68% of working-age people (25–64) do not participate in an employee-sponsored plan. Only 7% of Fortune 500 companies offer traditional pensions to new hires. According to recent studies, the U.S. retirement savings deficit is between $6.8 and $14 TRILLION.  45% of working-age households do not have ANY retirement account assets. According to Fidelity Brokerage, a couple retiring in 2015 with average life expectancies of 85 for a male and 87 for a female will have $250,000 in healthcare costs.  28% of workers have no retirement savings. For the real estate industry, the retail assets not considered “essential” will suffer; and affordable housing (senior and conventional) and self-storage will flourish.

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Retail Store Closures in 2017

Retail centers and their landlords and tenants must adapt or die as consumer preferences and purchasing methods rapidly change. Here’s a partial list of store closures for 2017:

J.C. Penney 138

Sears Holding: 108 KMart and 42 Sears

Macy’s: 68

Radio Shack: 187 (552 by 2020)

Abercrombie & Fitch: 60

Gap: 175

Guess: 60

Wet Seal: 171

Crocs: 160

The Limited: 250

American Apparel: 110

BCBG: 120

Payless ShoeSource: 400-500

GameStop: 150+

Staples: 70

CVS: 70

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