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STRETCH your possibilities with LG
LG’s Stretch Screens provide information, advertisements and broadcast
content reinvented in a distinctive and versatile LCD monitor. They are
a perfect fit for the Retail industry.
LG also offers a full line of LCD and Plasma televisions and monitors
with the latest in digital technology. LG has a design and function that
adds sophistication and style specific for commercial applications. www.LGcommercial.com
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ONLINE EXCLUSIVE
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Looking
Back, Looking Forward
By David Bodamer
The final numbers aren’t yet in, but there’s
little doubt that 2008 was the worst holiday shopping season in a
generation, marking an ignoble finish to a dismal year for retail. ICSC
warned that same-store sales might be down as much as 2 percent for
November and December combined when the final numbers are tallied,
making it the worst season in at least 40 years. That may be enough to
send some weakened retailers over the brink in 2009.
How did it come to this? A year ago we knew things were bad, but few
expected 2008 to unravel to this degree. The first bad omen for the
retail real estate sector actually occurred in late 2007—December 17
to be exact. That’s when Centro Properties Group first announced that
it was teetering on the brink of insolvency. The trust limped through
2008 trying to find a savior. At one point it was able to arrange a mass
sale of assets in a bid to raise cash to pay back some of its debt. But
the relief was short-lived. The deal later fell apart. The company
changed CEOs and was able to arrange several debt extensions. In the
end--almost exactly a year to the day that it first disclosed its
troubles--Centro agreed to cede control to its banks after failing to
refinance $3.4 billion of debt.
Early in the year rapidly rising food and fuel prices hammered consumers
hard. In spending more on necessities, consumers had to cut back on
discretionary purchases. At the same time, job losses piled up and
accelerated as the year went on. The unemployment rate rose from a low
of 4.5 percent to 6.8 percent today—the highest level since the 1980s
recession. A broader measure of unemployment—one that counts
discouraged workers and part-time workers looking for full-time
jobs—puts unemployment at 12.5 percent.
Read
full story here.
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Introducing
the Retail Traffic Digital magazine.
Now you can read the
full version of Retail Traffic with the interactive capabilities only
available online – clickable table of contents, keyword searches,
faster delivery, direct links to websites and it’s eco-friendly. To
test drive a sample digital edition, click here.
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CHART OF THE WEEK
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Chart
Of The Week
By Staff Reports
According to the September results for the S&P/GRA
Commercial Real Estate Indices, commercial real estate prices were
down 0.6 percent nationally compared with September 2007, just the
second annual decline measured in the 15 years of data in the index. The
September results are the final numbers for the indices, which was
discontinued on Dec. 23.
In the property sectors, three sectors reported negative returns over
the September/August period, while one sector reported a positive
return. Retail was –0.7 percent from September/August and -0.4 percent
year over year. Apartments were the best performing sector and Office
was the worst performing, returning +1.6 percent and -1.3 percent for
the month, respectively. Apartments were the only property sector that
reported positive returns on a year-over-year basis, returning +1.7
percent. Warehouse, down 3.3 percent, was the worst performing sector
over the one year period.
Read
full story here.
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The
Penton Commercial Real Estate Group teamed up to produce a special
research report about going green. Click
here to download the Green Building Survey and Directory. For
information on how to participate in the 2009 directory, please contact
Associate Publisher Amie
Leibovitz.
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BEST OF THE BLOG
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Projection:
Up To 3,000 Retail Properties To Close
By David Bodamer
This from the Boston Herald--analyst Burt
Flickinger says that up
to 3,000 retail properties could close in March and April. That
sounds like a massive, massive number. We haven't heard anyone else make
that kind of projection. We haven't heard about many actual mall
closings at all to date. There's certainly a lot of properties hurting.
But could that projection possibly be right?
The current spate of retailer bankruptcies and those
expected in the new year - along with still-healthy companies limiting
or stopping their expansions - could have a ripple effect on the
commercial real estate market.
Burt P. Flickinger, managing director of New York consulting firm
Strategic Resource Group, expects 2,000 to 3,000 U.S. malls and shopping
centers to close in March and April.
Read
full story here.
Check out other blog entries from the past week:
» The
Push for the Bailout Continues
» GGP
Signs Forbearance Agreement
» As
More US Retailers Fail, Malls Could Be Next Victim
» Two
More Looks at a Developer Bailout
» Another
Roundup from Bloomberg
» Venezuela
to Expropriate Mall
» How
Did Things Go?
» Retailers
Want a Bailout Too
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