Bankruptcy in a Coronavirus World
CRE Radio & TV Podcast
With so many businesses shuttered and federal financial relief delayed, employees, tenants, landlords and lenders are trying to work things out and survive until business gets back to usual. But for some, federal relief may come too late and negotiations may not work out as well as we all hope.
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Business Liability in a Coronavirus World
CRE Radio & TV Podcast
As businesses begin the process of reopening they are faced with a myriad of legal and operational issues that they have not previously encountered. Taking a cavalier approach to protecting your employees and the public from contracting the Coronavirus is not only morally wrong, it can lead to significant civil or criminal liability.
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California Coronavirus Eviction Moratorium Review on May 1, 2020
CRE Radio & TV Podcast
Some California cities and counties have imposed eviction moratoriums
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Retail Lease Issues in a Coronavirus World
CRE Radio & TV Podcast
This is the recording of a live webinar produced in cooperation between the Retail Brokers Network and Howard F. Kline, Esq. regarding how the Coronavirus has effected retail leasing.
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RENT RELIEF LEASE CLAUSES IN A CORONAVIRUS WORLD
CRE Radio & TV Podcast
This is the recording of our April 2, 2020 webinar in which my panelists and I take a deep dive into commercial lease clauses and legal theories that may provide some tenant rent relief or otherwise obligate the landlord to make certain accommodations for the tenant.
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Negotiating Rent Relief in a Cornavirus World
CRE Radio & TV Podcast
In this ever changing world of the Coronavirus, one thing is certain, tenants are going to be seeking rent relief, whether they are legally entitled to it or not.
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Creating and Maintaining a Winning Culture in Business
CRE Radio & TV Podcast
I've dipped into the archives for my 2018 interview with Adam Ifshin at the ICSC 2018 RECON Convention. This was really a personal interview between two men who already like and respect each other. We mix the personal with business, including how to incorporate family into business, creating a culture from the top down. For that, I want you to think of the book from Good to Great, what retail real estate will look like in 2038 and what the current trends are between now and 2038.
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The secret sauce for Successful Affordable Housing in Opportunity Zones
CRE Radio & TV Podcast
Daryl Carter, CEO of Avanath Capital Management, with 2-billion dollars of investment capital under management, discusses the value proposition of affordable housing that he has been pursuing for the last 20-years and its new focus on Opportunity Zones.
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What's Happening in the Las Vegas Opportunity Zones
CRE Radio & TV Podcast
Bill Arent is the Director of the city of Las Vegas Department of Economic and Urban Development. In this podcast, Bill and I discuss how the city went from, pre opportunity zone redevelopment plans and incorporated the new tax incentives offered by the Tax Cuts and Jobs Act of 2017 into their new plans to revitalize under capitalized portions of the city. We also discussed some of the projects that are in the works and other issues relating to opportunity zones.
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The Five Perils of Opportunity Zones
CRE Radio & TV Podcast
This is our first in our weekly series of live-streaming shows, focused on Opportunity Zones. Neal Bawa was our special guest. Neal talked about his, "The Five Perils of Opportunity Zones". It originally aired at 2:45, PM on August 27, 2019.
info_outlinePeter Morris and I discuss if there really is a Retail Apocalypse, just, fake news or, as Peter suggests, an evolution or shift. This written portion of my post does not cover everything Peter and I discuss on this show. If you want to watch the full video, please click here. This was recorded as part of our CRE Radio & TV, LIVE!
MASSIVE AMOUNT OF STORE CLOSURES IN 2019
As part of our discussion, we reference an article in Retail Dive referencing research from Coresight Research, their forecast that there will be 12,000 store closures in 2019, the recent Barney’s and Perkins and Marie Calendars’ bankruptcies and the UBS Securities’ Analysts’ forecast that there needs to be an additional 75,000 more store closures by the year, 2026. When you add all of this to the prediction that Ecommerce will continue to penetrate the retail market from its current 16% to 25% or more it really sounds bad for brick and mortar retail. Doesn’t it?
ARE THE STORE CLOSURES EVIDENCE OF A RETAIL EVOLUTION?
Peter and I conclude that it may not be so much of a Retail Apocalypse as aa Retail Evolution. Yes, for some retailers and landlord’s it is and will be an Apocalypse. But, for many others, it doesn’t have to be. We also caution that these one-sided predictions, often do not indicate whether they have taken into account store openings or changes in format. Using the example of Pizza Hut’s planned, 700 store closings. Sounds an awful lot like a “Retail Apocalypse,” yes? Well, not so fast. What they are looking to do is change their decades old format of larger, sit down restaurants to smaller take-out style. For every store they close, they may be opening twice as many smaller locations. Peter references “right sizing” and explains the concept.
WHICH RETAIL WILL SURVIVE AS THINGS CHANGE?
Have you ever read the book, “Who Moved My Cheese?” If you feel like the earth is moving underneath your feet, (yes this is a metaphor), then I highly recommend it. It’s a short read, something that I call a “potty reader”. It also uses a metaphor, that of how certain mice can navigate a maze when they realize that their cheese is no longer where it once was and how some mice never realize their cheese is no longer where it used to be.
The retail “cheese” hasn’t moved, for most, but it is moving and moving rapidly.
WHAT IS CAUSING THE STORE CLOSURES?
Peter and I explore some of what we believe is causing the store closures.
Is it a shift in demographics? Is it all about Ecommerce?
WHAT IS PSYCHOGRAPHICS?
Peter likes to use the term psychographics. What is psychographics, anyhow?
As it relates to consumers, a Google search reveals a dictionary description as an,
ARE BUYING HABITS CHANGING?
What about changes in buying habits?
IS RETAIL OVERBUILT?
Is retail overbuilt? In this respect, we also touch on one of my pet peeves; diminishing value. At least around where I live, I see restaurant prices going up and value going down. I am confident that when there is an economic downturn, these low value restaurants will be the first to go by way of the dinosaurs.
We also touch upon the likelihood of a retailer emerging from a Chapter 11 bankruptcy and how a retailer bankruptcy often differs from other bankruptcies.
To learn more about Peter and The Greenstead Goup, click here.
The author:
Howard F. Kline is a Nevada licensed real estate advisor with SVN The Equity Group, located in Las Vegas Nevada. He has also been a licensed California attorney for over 42 years, primarily focused on commercial real estate and has been a licensed California broker and a licensed New York real estate agent. He is also the founder and host of CRE Radio & TV, an online commercial real estate magazine since 2010 and recently founded the Las Vegas Business Journal, an online, media rich, interactive business magazine. For more information, contact Howard at 702.706.4433 or at [email protected].