Retail Property Research Articles

Lexington Realty Trust

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)Lexington Realty Trust is a self‐managed and self‐administered real estate investment trust that acquires, owns, and manages a geographically diverse portfolio of net leased office, industrial, and retail properties. Co. also provides investment advisory and asset management services to institutional investors in the net lease area. As of Dec 31 2006, Co. owned or had interests in approximately 365 real estate properties encompassing about 58.9 million rentable square feet in 44 states and the Netherlands. As of Dec 31 2006, Co., including through non‐consolidated entities, leased properties to approximately 285 tenants in 22 different industries.

National Retail Properties Inc

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)National Retail Properties is a self‐administered real estate investment trust (REIT). Co., directly and indirectly, through investment interests, acquires, owns, invests in, manages and develops primarily retail properties that are leased to tenants under long‐term commercial net leases. Co.'s operations are divided into two primary business segments: investment assets, including real estate assets, structured finance investments and mortgage residual interests as well as inventory real estate assets which is operated by its National Retail Properties Inc. subsidiary. As of Dec 31,2006, Co. had 710 investment properties with an aggregate leasable area of 9,341,000 square feet.

Colonial Properties Trust (AL)

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)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 223 wholly and partially‐owned properties as of Dec 31 2006, consisting of multifamily, office and retail properties located in Alabama, Arizona, California, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Texas, and Virginia. Co. is the general partner of, and holds approximately 81.4% of the interests in, Colonial Realty Limited Partnership.

Realty Income Corp.

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)Realty Income operates as an equity real estate investment trust (REIT) which has in‐house acquisition, leasing, legal, retail and real‐estate research, portfolio management and capital markets capabilities. In addition, Co.'s wholly‐owned REIT subsidiary, Crest Net Lease Inc. is engaged in buying, owning and selling properties, primarily to individual investors. As of Dec 31 2006, Co. owned a portfolio of 1,955 retail properties located throughout 48 U.S. states and with over 16.7 million square feet of leasable space. Also, Co.'s Crest subsidiary owned 60 properties with a total investment of $137.5 million as of Dec 31 2006.

Vornado Realty Trust

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)IVornado Realty Trust is a fully‐integrated real estate investment trust (REIT). At Dec 31 2006, Co. own directly or indirectly all or portions of 116 office properties aggregating approximately 31.7 million square feet in the New York City metropolitan area and in the Washington, DC and Northern Virginia area; 158 retail properties in 21 states, Washington, DC and Puerto Rico; 9 properties in five states and Washington, DC aggregating about 9.2 million square feet of showroom and office space; a 47.6% interest in AmeriCold Realty Trust; a 32.9% interest in Toys “R” Us, Inc.; 32.8% of the common stock of Alexander's, Inc., as well as various other interests in other real estate.

Restructuring retail property markets in Central Europe: impacts on urban space

This paper discusses the changing retail property structures in Central Europe in the aftermath of the integration of these countries in the global economy. In general, within the property market, retail real estate is the market sector that is most affected by internationalization. Therefore, this sector is relatively transparent compared to the office and residential markets. The macro-economic transitions in Central Europe and the integration of these countries in the world economy opened these markets to international retailers. As a result, the retail scene in these countries, combined with the structure of the retail property stock, has changed dramatically. In the late 1990s, Central Europe experienced a retail development boom driven by international hypermarket operators and speculative developers. Shopping centers and hypermarkets became important elements in the urban landscape. However, lack of planning and vision led to chaotic development, and over- supply was the outcome. In the future, public and private actors will need a vision of how the city should develop before embarking on flagship urban projects.

Technological Change as Reflected in Hotel Property Prices

This paper investigates the effects of age on the sale prices of hotel real estate. Value erosion of commercial property due to the passage of time may be offset by renovation, although substantial follow-on investment usually occurs several years following construction. Obsolescence produces value losses during the post-construction period prior to new investment that result from technological change (Colwell & Ramsland, Journal of Real Estate Finance and Economics, 8(1), 47–63, 2003). A hedonic model is specified to allow age to measure the effects of obsolescence in hotel prices. Although the long-run obsolescence rate for hotel properties of 1.93%/year aligns closely with the rate estimated elsewhere for retail properties, the path of obsolescence through time shows some marked departures. Contrary to the theory and the empirical results from the retail real estate market, hotel prices do not reveal much more obsolescence in the years immediately following construction than later. Also, the age and sale price relation turns positive nearing the third decade of the lives of hotels indicating a vintage effect. Thus, a V-shaped obsolescence function emerges that either may be explained by a fixed-cost renovation expenditure function or a vintage effect produced by the demand for surviving assets. A series of tests of hotel brand-specific obsolescence rates reveals considerable variation in these rates among seasoned properties, perhaps an indication of a convex renovation expenditure function and sequential follow-on investment.

Lexington Corporate Properties Trust

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)Lexington Corporate Properties Trust is a self‐managed and self‐administered real estate investment trust that acquires, owns and manages a geographically diverse portfolio of net leased office, industrial and retail properties and provides investment advisory and asset management services to institutional investors in the net lease area. As of Dec 31 2005, Co.'s real property portfolio consisted of 189 properties or interests located in 39 states, including warehousing, distribution and manufacturing facilities, office buildings and retail properties. Co. manages its real estate and credit risk through geographic, industry, tenant and lease maturity diversification.

H & R Real Estate Investment Trust

AbstractTrusts & Holding Entities (MIC: 8.9 SIC: 6733 NAIC: 523920)H&R Real Estate Investment is an unincorporated open‐ended trust with each unitholder participating pro rata in distributions of income and, in the event of termination of Co., participating pro rata in the net assets remaining after satisfaction of all liabilities. Co. invests in a diversified real estate portfolio of office, industrial and retail properties in both Canada and the United States and provides mezzanine financing for development projects. As of Dec 31, 2005, Co. owned and operated a portfolio of 227 properties, comprising an aggregate leaseable area of 34.4 million sq. ft.

Colonial Properties Trust (AL)

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)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 261 wholly and partially‐owned properties as of Dec 31 2005, consisting of multifamily, office and retail properties located in Alabama, Arizona, Florida, Georgia, Maryland, Mississippi, Nevada, New Mexico, North Carolina, South Carolina, Tennessee, Texas, and Virginia. Co. is the direct general partner of, and holds approximately 80.6% of the interests in, Colonial Realty Limited Partnership.

Realty Income Corp.

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)Realty Income operates as an equity real estate investment trust (REIT) which has in‐house acquisition, leasing, legal, retail and real‐estate research, portfolio management and capital markets capabilities. In addition, Co.'s wholly‐owned REIT subsidiary, Crest Net Lease Inc. is engaged in buying, owning and selling properties, primarily to individual investors. As of Dec 31 2005, Co. owned a portfolio of 1,646 retail properties located throughout 48 U.S. states and with over 13.4 million square feet of leasable space. Also, Co.'s Crest subsidiary owned 17 properties with a total investment of $45.7 million as of Dec 31 2005.

National Retail Properties Inc

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)National Retail Properties is a fully integrated, self‐administered real estate investment trust. Co. and its wholly‐owned subsidiaries acquire, own, manage and indirectly, through investment interests, develop primarily single‐tenant retail, office and industrial properties that are generally leased under long‐term commercial net leases. As of Dec 31 2005, Co. owned 524 properties, with an aggregate gross leasable area of 9.2 million square feet, in 41 states that are generally leased to major retail businesses under long‐term commercial net leases. These businesses include Academy, Barnes & Noble, Best Buy, Borders, CVS, Eckerd, OfficeMax, The Sports Authority and United Rentals.

AT LAST! Retail warehouse market round-up

This paper focuses on the retail warehouse and shopping park market and specifically on latest retailer activity and the current investment market. 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 10 years with returns surpassing all other forms of retail property investment. The market is maturing in all aspects. Investors are becoming increasingly discerning and have heightened requirements in the fields of retail warehouse management, marketing, commercialisation, tenant and rental aspirations together with expectations and quality advice from specialist consultants. In turn, retailers are maturing with their requirements in the utilisation of space, flexibility of use and store design and signage taking, in some cases, hard earned lessons from the high street to the new arenas of out of town shopping.

Extinction and Evolution: Department Stores in London's West End, 1945–1982

Department stores in London's West End, generally established during the nineteenth century, had become important elements of the physical landscape by the interwar period. They were of both economic significance and iconic status, and contributed to the wider commercial and social life of the metropolis. Not all survived the twentieth century, however. Despite recovery in the immediate post Second World War period, by the 1970s and 1980s they were often referred to as anachronisms and several closed. This paper suggests that while some failed to compete, others successfully developed the key area of fashion retailing. Whatever their retail and marketing strategies, the stores were all vulnerable to the acquisition tactics of retail entrepreneurs and property magnates, especially in the aggressive central London property market.

Retail planning and institutional property investment

Jackson C. (2006) Retail planning and institutional property investment, Regional Studies 40, 555–561. Investment in town centre retail property markets is dominated by institutions. Thus, sustaining and enhancing the vitality and viability of town centres, which is a key role of local planning authorities, is crucial to maintain the attractiveness of the area to investors. Investor movements into and out of markets can have a significant impact on the market and wider local and regional economic success. Informed by a series of in-depth interviews with key regional planning officials, the paper unravels retail planning policy to present key areas of policy that, in the current restrictive planning environment, are becoming crucial to enhancing market competitiveness. Further, the paper argues that, using the perspective of the institutional investor, access to measures of comparative policy stance and implementation across authorities would enhance knowledge of market functioning and performance, advancing the robustness of investment strategies. Jackson C. (2006) La planification du commerce de détail et l'investissement institutionnel immobilier, Regional Studies 40, 555–561. L'investissement sur les marchés de l'immobilier détaillé situé en centre-ville se voit dominer par les investisseurs institutionnels. Maintenir et augmenter la vitalité et la viabilité des centres-villes, un rôle clé des commissions d'urbanisme, s'avère essentiel afin d'assurer l'attrait du milieu pour les investisseurs. L'augmentation et la diminution des investissements pourraient avoir des effets non-négligeables sur la résussite des marchés et de la performance économique sur le plan local et au niveau régional. A partir d'une série d'interviews en profondeur auprès d'importants urbanistes, cet article cherche à dénouer la politique en faveur du commerce de détail afin d'en présenter des aspects clés qui, dans les limites restrictives actuelles de l'urbanisme, sont essentiels à l'augmentation de la compétitivité du marché. En outre, du point de vue de l'investisseur institutionnel, cet article affirme que l'accès aux mesures de la politique comparative adoptée et la mise en oeuvre à travers des administrations augmenteraient la connaissance de la fonction et de la performance du marché, prônant la fiabilité des stratégies d'investissement. Investissement régional, Planification du commerce de détail, Performance du marché de l'immobilier Jackson C. (2006) Einzelhandelplanung und institutionelle Immobilieninvestierungen, Regional Studies 40, 555–561. Bei Investierungen im Einzelhandeli mmobilienmarkt im Stadtkern dominieren Institutionen. Es ist deswegen wichtig für örtliche Planungsbehörden, deren Hauptrolle die Erhaltung und Erhöhung der Vitalität und Existenzfähigkeit des Stadtkerns ist, die Attraktivität des Gebietes für Investoren zu gewährleisten. Bewegungen in oder aus den Märkten seitens der Investoren können eine signifikante Auswirkung auf den Markt, und weiteren örtlichen wie regionalen Wirtschaftserfolg zur Folge haben. Dank einer Reihe eingehender Interviews mit massgeblichen Beamten der regionalen Planungsbeörden entwirrt dieser Aufsatz die Einzelhandelp lanungspolitik bis auf gegenwärtige Hauptgebiete dieser Bestrebungen, die im derzeitigen restriktiven Planungsklima für die Erhöhung der Wettbewerbsfähigkeit des Marktes entscheidend werden. Darüber hinaus vertritt der Aufsatz die Auffassung, dass vom Standpunkt des institutionellen Investors gesehen, Zugang zu Maßnahmen vergleichbarer Bestrebungseinstellungen und ihrer Durchführung in allen Behörden das Sich-Auskennen in Marktfunktionen und -leistung verbessern, und damit die Robustheit der Investierungsstrategien förderlich sein würde. Regionale Investierungen, Einzelhandelplanung, Leistung des Immobilienmarktes Jackson C. (2006) Planificación minorista e inversión de inmobiliarias institucionales, Regional Studies 40, 555–561. La inversión en los mercados de inmobiliarias en el centro de las ciudades está dominada por las instituciones. Por ende, para conservar la belleza de la zona para los inversores es de vital importancia sostener y aumentar la vitalidad y viabilidad del centro de las ciudades, lo que es una tarea fundamental para las autoridades de planificación local. Los movimient os de entrada y salida de los mercados por parte de inversores pueden tener un impacto significativo en el éxito económico de los mercados, las regiones y los municipios. Con información recabada a partir de una serie de entrevistas exhaustivas con funcionarios clave de la planificación regional, en este ensayo revelamos la polít ica de planificación minorista mostrando las áreas clave de la política que en el ámbito actual de planificación restrictiva son cada vez más decisivas para mejorar la competitividad mercantil. Además, en este artículo defendemos que con el uso de una perspectiva del inversor institucional, el acceso a medidas de posiciones políticas comparativas y su aplicación por parte de las autoridades mejoraría el conocimiento del funcionamiento y rendimiento del mercado, con lo que se perfeccionaría la solidez de las estrategias de inversión. Inversión regional, Planificación minorista, Rendimiento del mercado de inmobiliarias

The Irish Housing Market

This paper was commissioned as a report into the Irish Housing Market. The market has shown dramatic growth over the last 5 years, leading to fears in some quarters of a bubble. The report reviews the fundamentals underlying the Irish market for retail property and concludes that there is unlikely to be a bubble.

Horizontal Inequity in the Property Taxation of Apartment, Industrial, Office, and Retail Properties

Researchers have carefully examined assessment uniformity in ad valorem taxation for single-family residential properties and they have frequently reported nonuniform outcomes in the appraisal of these properties. This study analyzes the uniformity of assessed valuations across apartment, industrial, office, and retail properties in Maricopa County (Metropolitan Phoenix), Arizona. Specifically, we investigate horizontal equity, which results when the assessment ratio (assessed value/sales price) is uniform across properties with similar market values. We examine horizontal equity over a five-and-one-half-year period (January 1998-June 2003). After applying both parametric and nonparametric tests, we find statistically significant evidence of horizontal inequity. We find that retail properties are underassessed compared to apartments, and office properties are over assessed compared to apartments; however, we find little difference between industrial and apartment properties. We also find that properties owned by out-of-state residents are overassessed compared to properties owned by in-state residents.

Assessing Subjectivity in the Valuation of Retail Properties in Spain

The extent to which subjective influences impact on assessed valuations is an under‐researched area. Valuation practice within Spain is seemingly less developed than in the UK and other western European countries and explicitly allows for subjective adjustments in deriving the value of a property. This study, using a three stage modelling approach, seeks to quantify the impact of this effect on the valuation of retail property. The analysis uses data from a major valuation company within Spain and examines evidence from five cities. The results show that subjectivity corrects the model by as much as 12%. The study demonstrates that the variables with the greatest impact are age of property and construction quality rather than economic/market factors. This outcome highlights that valuation in Spain is still a more technical rather than a financial discipline.

Lexington Corporate Properties Trust

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)Lexington Corporate Properties Trust is a self‐managed and self‐administered real estate investment trust that acquires, owns and manages a geographically diverse portfolio of net leased office, industrial and retail properties and provides investment advisory and asset management services to institutional investors in the net lease area. As of Dec 31 2004, Co.'s real property portfolio consisted of 154 properties or interests located in 37 states, including warehousing, distribution and manufacturing facilities, office buildings and retail properties. Co. manages its real estate and credit risk through geographic, industry, tenant and lease maturity diversification.

Realty Income Corp.

AbstractProperty, Real Estate & Development (MIC: 8.3 SIC: 6798 NAIC: 525930)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.