The world of Lego has expanded beyond retail shops and has expanded into movies and theme park resorts. The popularity of the parks in California and Florida ostensibly led to a third park to be set in Orange County, New York.
The old adage, “you get what you pay for” may be a cliché when it comes to real estate; but in a growing trend among commercial real estate developments in New York City, investors and developers alike are taking consumer experiences into account.
In a number of our posts we have highlighted the steady erosion of brick and mortar retailers as some succumb to the growing popularity of online shopping. To some, this may signal the beginning of the end of commercial real estate, but to others, it is simply an evolution of the marketplace.
In our last post, we highlighted how retailers are trying to find additional ways to reach consumers given the proliferation of online shopping sites. Indeed, traditional brick and mortar retailers must adjust in a new marketplace, which means that developers and real estate owners must adjust accordingly. One way that they have met this demand is by giving consumers more than one reason to visit malls and shopping centers.
The commercial real estate industry is indeed in a precarious position. The rise of online shopping has essentially stunted growth in this industry, especially with retail outlets. But with every industry disruption, there may be new opportunities for growth.
When the main fundamental underpinnings of a successful commercial real estate market are flourishing (low unemployment, steady wage growth) you would expect that growth in the market would increase as well. However, according to a recent globest.com report, commercial real estate activity has fallen to a three-year quarterly low.
Making a real estate transaction work on a long term basis involves choosing the right property, making timely renovations and ensuring that financing works in order to make money on the right investment. This means that timely refinancing packages can be just as important as the property itself.
Much has been said over the past few years with commercial real estate investment by investors from China. However, as multifamily properties continue to increase in value, a purchase by a German real estate company is creating headlines.
Regardless of where a business is in its growth life, expansion has to be a question that should garner a great deal of consideration. Essentially, the location of a new storefront could have a huge impact on the business. Part of the decision in where to expand depends on whether the business will rent space or purchase a building.
It was imagined that repealing and replacing the Affordable Care Act (aka Obamacare) would be a political layup last November. Fast forward nearly six months, and there was no vote in Congress on rescinding the Act because it was forecasted that the new law would not pass the House of Representatives and would be dead on arrival in the Senate. All of this with Republicans controlling both houses of Congress.