Retail Property Research Articles

International Real Estate Review

In this paper, we formulate a tenant management problem for retail properties, such as shopping centers, provide an analytical framework for deriving the probability distribution of the sum of discounted future cash flows stochastically generated through tenant management, and find an optimal lease agreement structure and strategy for tenant-replacement management. More specifically, we formulate the problem of valuing the net present value of future net income from a retail property with tenant management and provide a valuation model for management decision making. The income fluctuates with market rent variations and management processes. In our framework, a property manager is required to choose an optimal mix of fixed rent and variable rent linked to tenant sales, and one of two tenant-replacement rules for return and risk enhancement. Finally, we provide an optimal strategy for this problem using Monte Carlo simulation, through which we value the real options of adopting an optimal strategy for percentage rent and tenant replacement made available by the New House Lease Law inare consistent with implications that short interests in REITs represent attempts to make short-term profits rather than general bearishness regarding real estate investments.

Colonial Properties Trust (AL)

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 798 NAIC: 25930)Colonial Properties is a self‐administered equity real estate investment trust. Co. owns, develops and operates multifamily, office and retail properties in the Sunbelt region of the U.S. Co. is a fully‐integrated real estate company, whose activities include ownership of a diversified portfolio of 153 wholly and partially‐owned properties as of Dec 31 2004, located in Alabama, Arizona, Florida, Georgia, Mississippi, Nevada, New Mexico, North Carolina, South Carolina, Tennessee, Texas, and Virginia. Co. is the direct general partner of, and holds approx. 72.7% of the interests in, Colonial Realty Limited Partnership, a Delaware limited partnership.

Realty Income Corp.

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 798 NAIC: 25930)Realty Income is a real estate investment trust engaged in acquiring and owning freestanding retail properties. As of Dec 31 2004, Co. owned 1,533 retail properties, located in 48 states with more than 11.9 million square feet of leasable space. Co. is a fully integrated, self‐administered real estate company with in‐house acquisition, leasing, legal, retail and real estate research, portfolio management and capital markets expertise. In addition, Co.'s wholly‐owned subsidiary, Crest Net Lease, Inc., focuses on acquiring and subsequently marketing net‐leased properties for sale.

Regency Centers Corp.

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 798 NAIC: 25930)Regency Centers is a self‐administered, self‐managed real estate investment trust. Co. is a national owner, operator, and developer focused on grocery‐anchored, neighborhood retail centers. As of Dec 31 2004, Co. owned 291 retail properties in 23 states, including those held in joint ventures, totaling 33.8 million square feet. Geographically, 19.3% of Co.'s gross leasable area is located in California, 17.7% in Florida, 11.7% in Texas, 10.0% in Georgia, 5.5% in Ohio, and 35.8% spread throughout 18 other states. Co. owns and operates its shopping centers through its operating partnership, Regency Centers, L.P. in which it owns 98.0% of the operating partnership units, as of Dec 31 2004.

Taking the shopping centre online: new models in e‐commerce

PurposeThis paper aims to provide a brief re´sume´ of previous research which has analysed the impact of e‐commerce on retail real estate in the UK, and to examine the important marketing role of the internet for shopping centre managers, and retail landlords.Design/methodology/approachBased on the results from a wider study carried out in 2003, the paper uses case studies from two different shopping centres in the UK, and documents the innovative uses of both web‐based marketing and online retailing by organisations that historically have not directly been involved in the retailing process.FindingsThe paper highlights the importance of considering online sales within a multi‐channel approach to retailing. The two types of emerging shopping centre model which are identified are characterised by their ultimate relationship with the physical shopping centre on whose web site they reside. These can be summarised as: the “centre‐led” approach, and the “brand‐led” or “marketing‐led” approach.Research limitations/implicationsThe research is based on a limited number of in‐depth case studies and secondary data. Further research is needed to monitor the continuing impact of e‐commerce on retail property and the marketing strategies of shopping centre managers and owners.Practical implicationsInternet‐based sales provide an important adjunct to conventional retail sales and an important source of potential risk for landlords and tenants in the real estate investment market. Regardless of whether retailers use the internet as a sales channel, as a product‐sourcing tool, or merely to provide information to the consumer, the internet has become a keystone within the greater retail marketing mix. The findings have ramifications for understanding the way in which landlords are structuring their retail property to defray potential risks.Originality/valueThe paper examines shopping centre online marketing models for the first time in detail, and will be of value to retail occupiers, owners and other stakeholders of shopping centres.

Retail warehousing, shopping parks and leisure

Retail warehousing is generally defined as ranging from ‘bulky goods units’ to modern progressive shopping parks. As a sector it outperformed all other property markets in the last ten years, with returns surpassing all other forms of retail property investment. It is generally believed that the sector will continue to outperform other property sectors and will be at the forefront of the wider retail market. 2004 was a strong year for this sector and, in the early months of 2005, confirmed transactions, together with speculation, suggest that this year will be no different.The market is maturing in all respects. Investors are becoming increasingly discerning and have heightened requirements in the fields of retail warehouse management, marketing, commercialisation, design, tenant and rental aspirations, expectations and quality advice from specialist consultants. Retailers are maturing in their requirements, with intensive utilisation of space, flexibility of use and store design and signage, and in some cases taking hard-earned lessons from the high street to the new arenas of out-of-town shopping.The market has seen a steady increase of new retailers: traditionally the vanguard of a few provide both the property market and the consumer with an ever-increasing range of retailers.Ironically, some of the earliest retailers who ventured out of town, such as the electrical retailers, have found that rentals have risen to such a level that they are being forced back into secondary locations. This creates opportunities for landlords to be creative asset managers.

General Growth Properties, Inc. (DE)

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC:525930)General Growth Properties is primarily engaged in the ownership, operation, management, leasing, acquisition, development and expansion of regional mall and community shopping centers in the United States. As of Dec 31 2003, Co.'s portfolio is comprised primarily of 162 operating retail properties (regional malls or community centers). Co. also has certain office space associated with Co.'s retail properties and approximately 1.4 million square feet of commercial/industrial space at 6 former JP Realty properties. The 162 operating retail properties are shopping centers with a variety of smaller Mall Stores.

Kimco Realty Corp.

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC:525930)Kimco Realty is an owner and operator of neighborhood and community shopping centers. As of Feb 5 2004, Co. had interests in 699 properties totaling approximately 102.6 million square feet of leasable space located in 41 states, Canada and Mexico. Co.'s portfolio includes properties relating to the Kimco Income REIT, a joint venture arrangement with institutional investors established for the purpose of investing in retail properties financed primarily with individual non‐recourse mortgages debt. Co.'s ownership interests also include the RioCan Venture and Kimco Retail Opportunity Portfolio and other properties or portfolios where Co. also retains management.

Investor Rationality: An Analysis of NCREIF Commercial Property Data

National Council of Real Estate Fiduciaries multiple listing service level cash flows and panels of capitalization rates or industrial, office and retail properties over the last two decades are examined in this study. Real NOI 5-year future growth is shown to be negatively related to deviations of current real NOI from trend. Given this trend reversion in real cash flows, investor rationality requires that income multipliers be low (capitalization rates be high) when real cash flows are above trend and visa versa. In the panel estimates, the opposite is seen to be the case. Whether this is due to questionable data or irrational behavior is uncertain.

Colonial Properties Trust (AL)

Mergent's Dividend AchieversVolume 2, Issue 2 p. 63-63 U.S. Company Report Colonial Properties Trust (AL)† First published: 22 April 2005 https://doi.org/10.1002/div.2234 † Contact: : Thomas H. Lowder — Chmn., Pres., C.E.O. Address: : 2101 Sixth Avenue North, Suite 750, Birmingham, AL 35203 Web Site: : www.colonialprop.com AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Abstract Property, Real Estate & Development (MIC: 8.3 SIC: 798 NAIC: 25930) Colonial Properties is a self-administered equity real estate investment trust. Co. owns, develops and operates multifamily, office and retail properties in the Sunbelt region of the U.S. Co. is a fully-integrated real estate company, whose activities include ownership of a diversified portfolio of 112 wholly and partially-owned properties as of Dec 31 2003, located in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Texas, and Virginia. Co. is the direct general partner of, and holds approx. 71.8% of the interests in, Colonial Realty Limited Partnership, a Delaware limited partnership. Volume2, Issue2Spring 2005Pages 63-63 RelatedInformation

The Significance of Fractional Interests in Listed Property Trust Portfolios

Fractional interests in commercial property have taken on increased importance as institutional investors seek to manage risk in their property portfolios. By assessing the ownership arrangements of over 8,000 commercial properties, the level of fractional interests in listed property trust (LPT) property portfolios in Australia over 1991–2004 is assessed. Significant increases in the level of fractional interests (both by number and value of properties) have been evident in the last five years; particularly reflecting increased levels of co-owned international property in LPT portfolios and the acquisition of local landmark office and retail properties via fractional interests. Retail and office property in a 50%:50% co-ownership arrangement is the most dominant local fractional interest structure, with international properties more likely to involve more than a 50% fractional interest by the LPT.

Annual and 18-month history of retail property performance

Despite fears of a slow-down in consumer spending, the retail sector has proved more resilient over the past 18 months than many observers would have predicted. There has been a significant divergence of investment activity between property companies and private buyers. Private buyers – propped up by heavy borrowing – have focused on the yield gap between income return and interest rates as a performance benchmark. This trend has inevitably put the institutional investors at a disadvantage, effectively pricing them out of the market by their need to focus on income return and capital growth.

Successful investment and turnaround strategies for distressed shopping centre properties

This paper addresses the formulation and implementation of successful turnaround strategies for distressed retail properties, including key characteristics for potential investment candidates, capital improvement programmes and retenanting programmes designed to make mall properties less susceptible to the loss of major anchor tenants. Attracting and enhancing entertainment-oriented anchors, improving visibility of key tenants, weeding out unhealthy, low-volume or unprofitable stores and attracting junior anchor tenants effectively to ‘Wal-Mart proof’ mall properties will also be addressed.

General Growth Properties, Inc.

AbstractProperty, Real Estate &Development (MIC: 8.3 SIC: 6798 NAIC:525930)General Growth Properties is primarily engaged in the ownership, operation, management, leasing, acquisition, development and expansion of regional mall and community shopping centers in the United States. As of Dec 31 2003, Co.'s portfolio is comprised primarily of 162 operating retail properties (regional malls or community centers). Co. also has certain office space associated with Co.'s retail properties and approximately 1.4 million square feet of commercial/industrial space at 6 former JP Realty properties. The 162 operating retail properties are shopping centers with a variety of smaller Mall Stores.

Kimco Realty Corp.

AbstractProperty, Real Estate &Development (MIC: 8.3 SIC: 6798 NAIC:525930)Kimco Realty is an owner and operator of neighborhood and community shopping centers. As of Feb 5 2004, Co. had interests in 699 properties totaling approximately 102.6 million square feet of leasable space located in 41 states, Canada and Mexico. Co.'s portfolio includes properties relating to the Kimco Income REIT, a joint venture arrangement with institutional investors established for the purpose of investing in retail properties financed primarily with individual non‐recourse mortgages debt. Co.'s ownership interests also include the RioCan Venture and Kimco Retail Opportunity Portfolio and other properties or portfolios where Co. also retains management.

Institutional Real Estate Investment in Ireland and Great Britain: Returns, Risks and Opportunities

Executive Summary. This study examines the returns and risks of private real estate investment in the major regional centers of Ireland and Great Britain for the 1981 through 2000 period. Returns for office and retail properties are analyzed at the disaggregate level (income returns and appreciation returns separately), as well as the aggregate level (total returns). Real estate returns are also compared with common stocks, gilts, T-bills and inflation. The results show that real estate in several U.K. regions, but especially in Ireland, offer very competitive returns with compelling risk / return ratios. The analysis indicates that real estate investments in several regions could supply significant diversification in a mixed-asset portfolio context as well as real estate only portfolios.

Shop rental growth assessments

This paper outlines the author's contention that investors, valuers and others are placing undue reliance on certain retail market data. It examines aspects of a practical difficulty that arise in consequence — the business of implicitly or explicitly assessing rental growth rates for individual retail properties.

Putting the Disability Discrimination Act into perspective

Despite the fact that the Disability Discrimination Act (DDA) is dated 1995, there is a general perception in the property world that it does not come into force until 1 October 2004. This is not correct. While from that date service providers may have to make ‘reasonable adjustments’ to retail premises, many parts of the Act are already in force. A second major misconception also exists. It is believed that compliance with the Act is purely about the provision of automatic entrance doors and permanent ramps to premises. In actual fact, the Act encompasses much more and impacts upon a much wider and deeper part of any retailer's in-store and out-of-store service provision. This paper is intended to familiarise the reader with the key requirements of Part III of the Act, to identify the significant issues and duties for the retail property industry and to define how this forms an integral and vital part of any large retailer's overall, sustainable, DDA compliance solution.

The potential for high‐performance design adoption in retail property portfolios

AbstractGrowing legislative pressures and increasing stakeholder awareness of environmental issues are pushing the property market to consider high‐performance, low‐impact retail buildings. The office sector is relatively advanced in its apparent appreciation of such buildings; however, the retail sector is slow to recognize these benefits. In exploring the business case for high‐performance design adoption in the retail sector, this paper examines the overlaps between office and retail sector benefits and considers the potential benefits peculiar to retailers. Barriers to high‐performance design adoption are then addressed through case research, interviews with key representatives from the retail property market and a questionnaire survey of FTSE listed retail company property departments. The paper concludes that information gaps are a significant hindrance to high‐performance property development and that they can be reduced, to some extent, by the forthcoming introduction of the BREEAM Retail environmental assessment tool. Copyright © 2003 John Wiley & Sons, Ltd and ERP Environment.

Retail property development trends in the central London market

This paper examines the trends in the retail property market in central London (City, Midtown, West End, Paddington, Southbank and Docklands) for 2003–2004 in light of the slowing economy, competition from suburban and out-of-town centres, congestion charging and lower tourism numbers. It looks at the plans of retail property developers and retailers and the effect on different submarkets of central London of the shifting balance of supply and demand.