Wednesday, October 26, 2016

The availability rate on Fifth Avenue is through the roof - Bloomberg

The availability rate on Fifth Avenue is through the roof - Bloomberg





...“Property trades are being based on achieving ever-higher rents, and nobody ever really looks at what retailers can afford to pay,” Hodos said. “In some cases, rents need to come down 30 percent or more for rents to be at levels where retailers are able to make sense of them again.”...



...Green Street Advisors LLC, estimates that several hundred malls around the country will cease operations over the next decade...



...To justify paying record prices for buildings -- and the debt that financed the acquisitions -- owners are under pressure to get the highest rents possible, according to Patrick Smith, a vice chairman of the retail brokerage at Jones Lang LaSalle Inc.

“Typically, a building that has been capitalized over the past three years is very rent-sensitive,” he said

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