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November 16, 2018

Home Depot’s Sales in Q3 Beats Estimates; Boosts Annual Outlook

The Home Depot racked up another quarter of solid sales and earnings gains fueled by continued strong demand in the home improvement market. The world’s largest home improvement retailer reported sales of $26.3 billion for the quarter ended Oct. 28, up 5.1% from the year-ago period. Net earnings for the third quarter of fiscal 2018 were… Read more »

October 31, 2018

Redevelopment Opportunities Abundant as Transformation of Sector Spurs Bankruptcy of Historic Retail Powerhouse

Adaptive changes necessary in today’s retail climate Like several other high-profile retailers in recent years, Sears Holding Corp. failed to evolve with the changing retail landscape and took on an unsustainable level of debt. Consequently, it filed for Chapter 11 bankruptcy, announcing the closure of 142 locations in the process. The company’s minimal reinvestment into… Read more »

October 31, 2018

Increased Consumer Spending Drives Expansion of Off-Price Retailers

Tight job market a key driver of consumption With unemployment at its lowest level in nearly 50 years, a larger employment base has helped increase the amount of money circulating through the economy. This has kept consumer spending elevated as core retail sales posted a 5.0 percent year-over-year gain in September. Though this figure is… Read more »

July 18, 2018

Strong U.S. retail sales lift second-quarter GDP estimates

U.S. retail sales rose solidly in June as households boosted purchases of automobiles and a range of other goods, cementing expectations for robust economic growth in the second quarter. Signs of a strengthening economy, together with a tightening labor market and firming inflation, likely will keep the Federal Reserve on track to continue raising interest… Read more »

June 28, 2018

Amazon Makes $1 Billion Splash in Health Care, Buying PillPack Inc. is buying its way into the heart of the U.S. health-care system, instantly shaking up a prescription-drug industry already in the midst of a broader transformation. Insurance companies and drug-benefit managers have struck a series of deals in recent months designed in part to thwart a potential big splash in the health world from… Read more »

April 27, 2018

Retail Sales Trend Up As Discretionary Income Advances; Retailers Refine Strategies to Sustain Growth

Rising take-home pay fosters retail momentum. Increased discretionary income stemming from tax cuts and a tight labor market are starting to materialize. Inflation-adjusted core retail sales recorded a 2.5 percent year-over-year increase for the fourth straight month, following an average of 2 percent expansion the previous 18 months. E-commerce sales continue to propel retail activity,… Read more »

April 27, 2018

Tight Labor Market, Enhanced Spending to Continue; Tenants Adapt by Combining Physical and Online Retail

Strengthening economy invigorating consumption. Retail sales will continue to grow this year as discretionary income ascends. Bolstered spending can be linked to advancing wages from a competitive employment market, along with increased take home pay from the revised tax plan. In 2017, retail sales posted a 4.3 percent increase, with home furnishings playing a primary… Read more »

July 06, 2017

What Amazon’s Big Move Means for Retail Real Estate

Amazon Establishes a Brick-and-Mortar Presence with the Acquisition of Whole Foods Amazon Enters Grocery Business Amazon has decided to purchase Whole Foods for $13.7 billion dollars, after testing a variety of concepts to enter the grocery store segment. This transaction, allows Amazon to have direct access to the grocery store segment which accounts for consumer… Read more »

June 29, 2017

Walgreens – Rite Aid Merger Falls Through

Walgreens and Rite Aid announced Thursday, June 29th 2017 that they are no longer merging. Instead Walgreens will purchase 2,186 Rite Aid stores for $5.2 billion. This transaction will cut Rite Aid stores in half, with 2,350 stores remaining after the deal is done. The stores purchased by Walgreens will be rebranded into new Walgreen’s… Read more »

April 21, 2017

Consumer Optimism Buoys Net-Leased Sector

Confident Consumers Boost Positive Economic Momentum The economy maintained momentum to perform admirably in 2016 following a slow start to the year. This trend will carry into 2017 as consistent job creation across a wide array of employment sectors provides momentum for the economy while compressing the unemployment rate. Also, tight labor markets are translating… Read more »

March 30, 2017

Emerging Investor Trends for the First Quarter of 2017

Investors Dial Back Transactions Amid Murky Policy Outlook   Investors scale back activity as the market recalibrates to higher interest rates and awaits clarity on government policy. The November election sparked a rapid rise in interest rates and introduced a wide range of prospective reform initiatives. Proposed changes to tax, fiscal, and regulatory policies raise… Read more »

March 21, 2017

Federal Reserve Raises Interest Rates Toward Normalization

Rising Confidence in Expansion is a Key Factor Federal Reserve raises its benchmark rate by 25 basis points due to a positive economic outlook. The Fed’s confidence has improved significantly over the past year given the steady retail sales growth and tightened labor market. Rising Fed Funds do not necessarily align with Treasury rate movement,… Read more »

February 09, 2017

Investors Continue to Turn to Drug Stores for Income Security

Investors Attracted to Drug Stores due to Income Security, Long Lease Terms, and Strong Drug Store Sales from Aging Population Drug Sales Increase from New Pharmaceutical Treatments and Increase of Insured Americans: Due to a greater number of people with medical insurance and pharmaceutical innovation that offers new treatments for a range of maladies, prescription… Read more »

January 18, 2017

Retail Sector Evolves as Consumer Preferences Change

Holiday Sales Reveal Promising Outlook  Retail sales from November through December 2016 increased with a 4% gain on a year-over-year basis. This gain outpaced the 10-year average of 2.5% growth, allowing consumer confidence to reach the highest level since August 2007.    Department Store Sales Struggling This past year department stores battled to gain traction, with… Read more »

January 11, 2017

Employment Acceleration; Increasing Wages Support Real Estate Outlook

The Employment Market Has Progressively Expanded, Tightening the Labor Market The employment market has steadily grown last year despite various unanticipated events that could have affected job expansion. In 2016, 2.2 million jobs were created allowing the unemployment levels to drop to its lowest level since 2007. The economy has generated 75 straight months of… Read more »

December 22, 2016

Increased Fed Rate Results in Mixed Signals for Investors

The Federal Reserve Raises Interest Rate The Federal Reserve increased its overnight rate by 25 basis points to a range from .50 percent to .75 percent. This decision reiterates the positive  economic outlook for 2017 that could accelerate monetary policy this upcoming year. Rising rates will remain a significant factor in the commercial real estate… Read more »

October 10, 2016

Why A Tight Labor Market Is Good For Real Estate

Hiring Positive but Restrained by Tight Labor Market Wage Pressure Emerging Hiring in September reaffirmed that job creation is moderating from the elevated levels of the past two years. The downshift to a more tempered pace likely reflects a shortage of qualified workers as unemployment hovers near 5.0 percent. Accelerated wage gains offer some evidence… Read more »

September 08, 2016

Update on Walgreens – Rite Aid Merger

Walgreens Boots Alliance Provides Update on its Pending Acquisition of Rite Aid DEERFIELD, Ill. –(BUSINESS WIRE)– Walgreens Boots Alliance, Inc. (Nasdaq:WBA) today provided the following update on its pending acquisition of Rite Aid Corporation ( NYSE : RAD). Walgreens Boots Alliance and Rite Aid remain actively engaged with the Federal Trade Commission (FTC) regarding its… Read more »

August 11, 2016

Solid U.S. Job Growth in July Brightens Economic Outlook

Labor Market Trend of Payroll & Wage Growth Exceptional payroll growth in July and upward revisions to job gains in the preceding two months underline the persistent strength of the U.S. economy, which is now in its seventh year of expansion. Secondary indicators of labor market activity, including unemployment claims, the unemployment rate and wage… Read more »

July 25, 2016

How E-Commerce is Reshaping Brick-and-Mortor Retail

Internet Shopping becomes a Destination Hub The rise of Internet shopping as a destination hub is reshaping the economy, steering spending toward new sellers and platforms as product selection, delivery times and convenience improve. The ascent of this trend is spawning the creation of Internet-based businesses and pressuring traditional retailers to adapt as mobile commerce and… Read more »

July 12, 2016

The Silver Lining to BREXIT

Contrary to polls and predictions, citizens of the United Kingdom voted to leave the European Union, creating uncertainty that induced a sharp decline in global equity markets. The British currency fell dramatically, boosting the value of the U.S. dollar, and the quick re-deployment of capital to safer assets pushed U.S. Treasury rates to their lowest… Read more »

April 20, 2016

Foreign Investment in United States Commercial Real Estate

A recent survey by the Washington-based Association of Foreign Investors in Real Estate, or AFIRE,  revealed that a large percentage of foreign investors are expected to invest more in US real estate in 2016 than they did in 2015. It may be noted that the members of AFIRE hold around $2 trillion of the global… Read more »

April 04, 2016

Could Better Burger Be Chipotle’s New Flag?

Chipotle Mexican Grill Inc. may be diversifying its business and launching a new burger restaurant chain. The company has stated that it has applied for ‘Better Burger’ as a trademark which has been confirmed by the official website of the U.S. Patent and Trademark Office. Chipotle has already diversified into 2 smaller restaurant chains featuring… Read more »

April 01, 2016

Dollar General’s Aggressive Expansion Plan for 2016

Dollar General Corporation is a value for money shopping destination that has been in business for 75 years. It offers a wide variety of products at affordable prices in convenient neighborhood locations. As of January 2016, Dollar General had 12,483 stores spread across 43 states. 2015: A banner year for Dollar General and the future… Read more »

February 22, 2016

Sports Authority Facing Chapter 11

Sports Authority is said to be seeking the protection of Chapter 11 Bankruptcy after failing to make a $20 million interest payment to its creditors on a $343 million loan in January 2016. Since the acquisition of Sports Authority in 2006 by Leonard Green & Partners LP, the company has seen a notable decline from… Read more »

December 17, 2015

The Fed Finally Raised Interest Rates – Did Anyone Notice?

After analyzing, discussing, and generally fretting over the FED’s every move, the long awaited interest rate hike came with virtually no response from, well, anyone. The 0.25% hike was absorbed without any noticeable impact on the cre market. With the conflicting forces of the instability in China and around the globe and the strengthening US… Read more »