Macerich CEO and Chairman Arthur Coppola, who has been head of the company since 1993, will be retiring at the end of the year. The REIT is searching for a new CEO and has tapped board member Steven Hash to fill the role of chairman starting at the upcoming annual meeting.
Retail REITs that have been financially prudent and are able to invest should be able to distinguish themselves from competitors, says DJ Busch, managing director for retail at Green Street Advisors. In general, he says, the "bar is getting higher on what qualifies as quality in the retail space."
The Urban Land Institute's semi-annual economic forecast predicts that US GDP growth will reach 2.8% this year, then dip to 2.5% in 2019 and 2% in 2020. Commercial real estate is expected to remain solid for the next few years.
Despite some current challenges, senior housing remains a compelling asset class for real estate investors, according to Beth Mace, chief economist and director of outreach at the National Investment Center for Seniors Housing & Care. Demographics favor senior housing, she says, with the greatest growth occurring in the 75- to 82-year-old age group.
AIMCO's recent acquisition of a seven-property apartment portfolio with 1,006 units in Philadelphia illustrates the REIT's devotion to the market, which Executive Vice President Wes Powell says still has upside. "In the long term, we're bullish on Philly," he says.
The number of weekly shoppers at physical stores has increased from 36% in 2014 to 44% this year, a PwC survey has found. And mobile phone shopping has grown from 7% in 2013 to 17% this year.
The amount of retail space that's closing could reach a record level this year, especially as retailers downsize. After years of scaling up after the recession, retailers are being forced to reduce floor plans to accommodate consumers' reduced shopping and spending.
Crossville, Tenn., wants to see retailers moving in and plans to develop incentives to encourage a larger retail developer to do so. The city is working with consulting firm NextSite to create interest.
The 140,568-square-foot Governor's Crossing in Sevierville, Tenn., has been acquired by Time Equities. The property features a Jo-Ann Fabrics, a Books-A-Million and other retail tenants, and it is near Tanger Outlets Sevierville.
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