Tag Archives: decreasing

Northern Nevada-area newspapers decreasing print editions

Tuesday, July 3, 2018|9:57 a.m.

CARSON CITY– The owner of 4 northern Nevada-area papers says it’s decreasing the number of days it prints the papers each week.

The Nevada Appeal in Carson City reports owner Sierra Nevada Media Group is cutting the paper’s publishing schedule from six days a week to simply Wednesdays and Saturdays.

Sierra Nevada Media Group is also cutting The Record-Courier in Gardnerville from printing 3 days a week to just Thursdays and Saturdays. The Lahontan Valley News in Fallon will shift from 2 days of print to Wednesday only and Tahoe Daily Tribune will shrink from publishing three days a week to Fridays only.

The newspapers will still release online regularly.

Sierra Nevada Media Group says tariffs on newsprint, the effect of paper on garbage dumps and altering habits of readers all affected the choice to alter the publishing schedule.

Decreasing Occupancy, Rent Development Infecting Top Tier of Best-Located US Retail Residences

Job Rates for Malls, Shopping Centers Expected to Tick Up in 2018 Despite Robust Retail Costs, Economic Growth

The largest investment sale transactions of the fourth quarter included Albertsons’ $721 million sale-leaseback of 71 properties across 12 states, including this Safeway residential or commercial property in Florance, AZ.Even the

finest carrying out and most well situated U.S. shopping centers and shopping mall are starting to feel the pinch of flat-lining rent development and a vacancy uptick as e-commerce continues to take market share from brick-and-mortar retailers and the retail sector enters the late stages of the realty cycle.

Despite a fairly strong surface for sellers in the last three months of 2017 buoyed by enhanced customer costs and a broadening economy, need for U.S. retail property was typically lackluster for the year, according to market highlights provided by CoStar managing specialist Ryan McCullough and director of U.S. research Suzanne Mulvee in the 4th Quarter 2017 State of the U.S. Retail Market.

“All informed, we are seeing some indications of a slowdown in the retail market,” stated McCullough, noting that retail absorption amounted to about 69 million square feet for 2017, down about 30% from 2016 and 2015 levels, with developers expecting to provide roughly 80 million square feet of new retail space in 2018 as demand from retail tenants begins to soften. “Provided the slowdown in need and some uptick in supply, we might anticipate the nationwide retail vacancy rate, which went flat in 2017, to begin to increase modestly in 2018,” McCullough said.

Reflecting slowing financial investment sales volume observed by CoStar analysts across all commercial property types, retail financial investment fell to just listed below $20 billion in the 4th quarter, its lowest level because mid-2014. In addition to a lessened hunger amongst cautious buyers, lots of sellers are also pulling residential or commercial properties off the market after failing to accomplish prices that fulfills their expectations, McCullough stated.

Leading Centers Seeing Rent Erosion

One sign of the softening market conditions is a moderate rise in jobs and flat-lining of rental rate growth in recent quarters at the country’s leading located and most productive Class A shopping centers, urban luxury centers and shopping mall. These properties have consistently logged the highest location quality scores, as ranked by CoStar’s exclusive formula determining the combined results of demographics, density of surrounding business residential or commercial property and market competition on individual retail centers.

While retailers are readily absorbing some brand-new supply entering the market, specifically spaces of 20,000 square feet and listed below, larger boxes in certain centers that are ranked in the top 10 percentiles of place quality remain in lots of cases taking longer to rent up, showing wider weak point amongst U.S. power center occupants.

On the other hand, at the opposite end of the quality spectrum, the number of “zombie” power centers with vacancy rates of 40% or more has actually increased 60% considering that 2016 due to a spike in store closures by Kmart, Toys R Us and other big-box retailers and grocers. The closures and insolvency filings are installing weekly and likely will not ease off at any time quickly. Toys R Us prepares to close another 200 shops and lay off corporate workers, in addition to 170 previously announced shop closures, the Wall Street Journal reported Thursday. On Wednesday, Northeast grocery store chain Tops Markets LLC applied for Chapter 11 personal bankruptcy security.

Grocery Centers Might Face Increased Risk

In contrast, the neighborhood grocery anchored retail segment has continued to see good demand development and falling jobs, the CoStar market analysts reported. Even these reliable entertainers, nevertheless, might be facing some underlying danger due to over-retailing and tenant competition in coming quarters.

“Since lots of designers and landlords still consider the grocery anchored sector to be a safe protective play against e-commerce that brings foot traffic, we are continuing to see more absorption and development that might maybe result in issues with oversupply,” McCullough stated.

While overall retail space per capita has actually reduced by about 5% considering that 2009, the amount of anchored space per capita has actually increased by the exact same quantity during that period amid competitors from big-box chains that have included food and groceries to take on grocery chains.

“We’re seeing increasing delinquency rates in CMBS issuance amongst centers with mid-market grocers such as Albertsons, Winn Dixie and even Publix as a large renter,” McCullough said.

General U.S. retail rents increased another 1.7% in the final 3 of 2017 to $20.67 per square foot. However, the growth rate has slowed over the past 12 months from the average 3% development seen over the previous three years as asking rents have actually moderated in New York City, San Francisco, Miami, Boston and other core markets.

Demographics are once again driving rent development, with Atlanta, Charlotte, Las Vegas and other high-population-growth metros tape-recording a few of the greatest rent growth in 2017 as homebuilding and industrial building have lastly picked up, while markets with stagnant and even negative population development such Hartford, Long Island, Chicago and New Orleans logged very few lease gains. Rent growth has actually also begun to decline in retail centers with a location quality ratings above 90 in recent quarters.

In spite of the risk of online competition and store closures, total monthly retail sales grew by a typical 0.5% monthly in 2015 from an average 0.2% in 2015 and 2016, with gains driven by increases in health-care and individual care and structure products and materials showing the growing strength in the housing market. On the other hand, clothing and furniture sales lagged in 2017. The decrease in clothing sales particularly worrisome as garments tenants occupy an estimated 64% of shopping mall and department store space, Mulvee said.

Despite striking a soft spot, general U.S. retail sales continued to trend in the ideal direction at about a 4.2% yearly boost in January, inning accordance with U.S. Census information released last week. Increases in individual earnings and the favorable effect of tax cuts could position 2018 as a stronger year for consumption, Mulvee stated.

Financiers Chasing After Quality, Earnings Reliability

The retailer distress that has pushed comparable-store sales and principles has impacted the capital markets. The U.S. Retail Index of the CoStar Commercial Repeat Sale Index (CCRSI) started to decrease in 2017, though it rebounded in the 2nd half to end the year with a net 10% gain from 2016.

Investors are typically looking for highly productive properties with high location-quality ratings and capitalization rates are now trending upward on sales of lower-quality properties, Mulvee and McCullough stated. While well-performing Class A mall are trading at a premium compared with previous cycles, an average of $387 per square foot compared to $347 in 2005-2007, B and specifically C malls are trading at a sharp discount of as much as 50% compared to the 2005-2007 boom years.

Financiers are likewise fulfilling in-place tenancy, with triple-net lease deals comprising almost 20% of overall retail sales volume in 2017, an increase of about 9% over the 2009-2012 duration, McCullough stated. The biggest deal of the fourth quarter was the sale-leaseback by Albertsons of 71 shops throughout 12 states to Cardinal Capital Partners, Inc. for $721 million at a 6.5% cap rate.

Some well-located power centers also altered hands in 2017, including the 426,000-square-foot Centerton Square in Mount Laurel, NJ, offered by Black Creek Diversified Residential Or Commercial Property Fund, Inc. to Status Properties & & Development Business, Inc. for $129.6 million, or about $303.93/ SF, at a 5.8% cap rate.

McCullough kept in mind that location rating for Centerton, which was fully rented to Costco and Wegman’s at the time of the sale, ranks a strong 95 due to its wealthy demographics and a considerable close-by workplace and hotel existence.