The retail real estate business has bounced back, but it’s unclear just how big the bounce will be.
After recession-era pronouncements about the demise of the mall and the takeover of brick-and-mortar by online competitors cast a pall over the sector in the past few years, shopping-center owners and operators are now decidedly cheery that most retailers seem to have turned the corner, retail unit growth is being considered again, shoppers haven’t abandoned malls and retail rents are increasing at core properties and streets.
But questions raised during the recession remain, including the fate of middle-income consumers, the sort of store footprints suited to a digital world, the retail environments that should be cultivated to pull people away from their devices, and the lack of new mall development.
“Business is better,” declared Peter Lowy, co-chief executive officer of Westfield Group, the world’s largest mall owner with 105 shopping centers in five countries, which saw net profits advance 18.3 percent in 2012 to 1.72 billion Australian dollars, or roughly $1.66 billion at current exchange, and average specialty rents at U.S. malls rise 2.3 percent for the year to $63.56 a square foot. “We are comfortable that the recovery that has been going on for the last two or three years, while slow, is continuing. Retailers are expanding. There is big demand for the top centers around the world.”
The recent International Council of Shopping Centers RECon in Las Vegas reflected the renewed confidence. “There’s a lot more optimism and definitely a risk on versus risk off mentality,” said Anthony Buono, executive managing director for retail services at commercial real estate services and investment firm CBRE Group Inc. “The mood is positive,” concurred Rick Caruso, founder and ceo of Caruso Affiliated, owner of The Grove, The Americana at Brand and The Commons at Calabasas in the Los Angeles area, among other properties. “The bankers realize their job is more challenging. That means there is a good economy, and they have competition.”
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)