From The Magazine

Getting Out Of Our Own Way

How landlords, brokers and lawyers can help retailers stay alive.

Despite the hyperbolic headline-grabbing hysteria ringing the death knell of stores, the retail industry is very much alive. For as long as mankind breathes, we will need supplies. Humans are hardwired to shop. Consumerism, as examined through the periscope of history, is really just an elevated form of our pre-civilization survival skills of hunting and gathering. We collect, we acquire, we devour, we display.

Understanding how we shop today requires reflecting on how we have shopped during other times in history; Only then can we begin to properly envision the shopping of tomorrow. In this context, it becomes clear that mankind will forever shop — shop until we drop, in this literal sense of the word. Rather than contributing to the free fall of retail and helping perpetuate those misconceptions, perhaps we should pause and examine the evolution of retail to help preserve its future viability.

Net Lease Properties Maintain Pace

The market for single tenant net lease properties in 2017 operated in an environment of ambivalence. At issue were the political uncertainty following the election of a new U.S. president along with uncertainty regarding how proposed changes to the nation’s tax code would treat investors used to the benefits of a 1031 exchange. Rising interest rates over the past 18 months factored into net lease transactions, compressing yields on properties. All of these elements come into play at a time when retail itself is going through changes, forcing investors to look more closely at not only the real estate and location, but the viability of a tenant for a long-term lease.

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