Retail Survival Strategies
As about 4,000 major retail chain stores closed in 2016, and at least 5,000 more are expected to close in 2017, retailers are scrambling to remain relevant. Survivors recognize their continued success depends upon offering what the internet can’t -- experiential customer engagement. Chains like Michaels now offer free classes and in-store events. Retailers like Best Buy now provide customer solutions in addition to products. Restaurants and malls have added entertainment components. Some companies ...
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Regal Properties receives American Leadership Award
In May 2017, Regal Properties received an American Leadership Award based on annual surveys of the real estate industry. Regal Properties encourages other real estate professionals to join its commitment to "Invest in People & Property" by donating some percentage of all fees and commissions to charitable causes.
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Zillow Tests Instant Offers with Home Sellers
Zillow has just launched a pilot program in two cities — Las Vegas and Orlando, Florida — called “Zillow Instant Offers,” with the promise that a home sale transaction can be completed in as little as a week. The new Zillow product allows prospective home sellers to receive all-cash offers from a hand-selected group of 15 large private investors along with a side-by-side comparative market analysis from a local Zillow Premier Agent. Home sellers ...
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Regal Properties Closes $5,400,000 Retail Purchase at 8.5% Cap Rate in Phoenix
Regal Properties' Senior Associate, Maha Odeh, represented the buyer in the purchase of Woodland Plaza at an 8.5% cap rate. This $5,400,000 retail shopping center in Phoenix, Arizona, located on the main retail corridor of West Bell Road, has 40,000 square feet of improvements leased by 15 tenants, including Mattress Firm, Dollar Tree and Domino's. Escrow closed on May 5, 2017.
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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 ...
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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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San Diego County Apartments in 2017
The San Diego regional economy remains healthy, posting its 5th straight year of positive job growth, with unemployment currently at only 4.2%. The regional apartment market remains strong for investors -- with rents forecasted to have sustained growth of 3%-5% and vacancy rates forecasted to hold steady at 5% county-wide in 2017 -- due to high demand for rental housing. Buyer demand remains strong as investors and 1031 exchangers search for both turnkey and ...
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Rising Interest Rates & Rising Cap Rates in 2017
In 2017, the Federal Reserve Board projects at least three interest rate hikes of 0.25% each; and cap rates are expected to increase by 100 basis points. Be careful with low cap rate investments!
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Trump’s Impact on Homes
The US real estate market anticipates at least two economic policies will occur as a result of the Trump election: (1) the lowering of corporate tax rates and (2) deregulation of the capital markets. Beneficiaries of such changes include the banks, all incorporated businesses, and owners of high-priced homes.
The increase in after-tax earnings retention has already caused the stock market to rally since the election. Not surprisingly, mortgage applications have already declined by nearly 10%. ...
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Can Real Estate Now Be Used for Marijuana Business?
Although many states have legalized marijuana, the possession, distribution, and cultivation of marijuana remains illegal under the federal Controlled Substances Act.
Because federal law still prohibits the use or sale of marijuana, any individual or business providing services to marijuana-related businesses (MRBs) could be subject to criminal charges for aiding and abetting, or conspiracy. The receipt or transfer of proceeds from the sale of marijuana, such as rent from an MRB tenant, is a violation ...
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