Jul

22

Keeping Nationwide Store Closures in Perspective

Filed Under Economy, Local Market, Statistics | Leave a Comment

The International Council of Shopping Centers estimates nationwide retail store closures will total 144,000 in 2007, a 7 percent increase from 2006.  Although this a large number, in 2006 123,000 new stores opened and 139,000 closed.  New store opening have helped soften the effects of nationwide store closures.

There is no arguing that retail is presently a troubled sector with consumer confidence dropping and consumer disposable spending in negative double digits for 50 straight weeks.  The confidence confidence index serves as an important bellwether of consumer spending, which accounts for two-thirds of the U.S. economy and an essential economic driver for the retail sector.

Nationwide retail properties reported a vacancy rate of 7.8 percent in the Reis Inc. second quarter 2008 survey.  Locally we have seen a number of store closures, but nothing close to other troubled markets around the United States.  Starbucks recently posted the final list of approximately 600 company-operated stores in 45 states scheduled to close beginning this month through next March.  Our MSA has only one store scheduled for closure, the Starbucks located off Market and Garland in Spokane.

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Jul

3

Commercial Property Prices Still Gaining

Filed Under Economy, National Market | Leave a Comment


A recent article in National Real Estate Investor gives insight on Standard & Poor’s March GRA Commercial Real Estate Indices.  Overall, national commercial property prices have risen over 5% from March 2007 to March 2008.  The strongest performing region in the month-over-month indice was the Pacific West region.  For more details, click on the link below.

Commercial Property Prices Still Gaining

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May

7

Sam Zell Predicts Commercial Real Estate Resurgence

Filed Under Economy | 1 Comment

Sam Zell, chairman of Equity Residential, predicts more capital will begin flowing to commercial real estate investments and commercial mortgage backed securities in the near future. If his outlook is correct we could begin to see some much needed liquidity in the financing realm.

For the first time since July, when credit markets froze in reaction to rising home-loan defaults, investors are starting to move their money from Treasury bonds, whose returns are below the inflation rate, and into commercial mortgage-backed securities. Insurance companies and pension funds need to earn at least 6 percent to cover their liabilities, Zell said.

A 10 year Treasury note ended at 3.875% today, up 20 basis point from Tuesday. We have seen slight upward movement in the 10 year note, however the rate has dramatically changed from the 5% plus rates last summer.

Sam Zell - Bloomberg Article

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May

1

Is Coeur d’Alene Recession Proof?

Filed Under Coeur d'Alene, Economy | Leave a Comment

A recent article in the Spokesman Review detailed Coeur d’Alene’s unique ability to potentially beat a national recession. Business consultant Mark Hovind has identified 27 “recession proof” cities. He bases this list off of data from the U.S. Bureau of Labor Statistics.

In my own personal opinion, Coeur d’Alene is definitely not immune to the national trends, however we have a unique area with an increasingly diverse economy. Our area has continued a positive influx of immigration from neighboring states. What is for certain, Coeur d’Alene will continue to be a highly desirable area that will continue to grow despite problems in the national economy.

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