RETAIL NOTES

"Give the lady what she wants." — Fyodor Dostoyevsky "Marshall Fields" 1879 "We want to be something completely new.There is no physical analog to what Amazon.com is becoming" — Jeff Bezos   The commercial retail real estate sector has always been a dynamic and evolving sector. This rapidly changing evolution has been driven by demographics, consumers' tastes and technology. Lately, there have been many media reports regarding the impact of electronic retailing and its impact on traditional bricks and mortar stores. Most of these reports predict a dire future for malls and shopping … [Read more...]

Top 10 REIT Reasons 2017

"If what you've done is stupid, but it works, then it really isn't all that stupid" — David Letterman   Even though it has been several months since David Letterman left the airwaves, one of his most iconic features lives on as we present The Top Ten Reasons to Own REITs in 2017. REASON #10 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - INTEREST RATES Interest rates remain low relative to the long term levels during observed during the modern REIT era which began in 1992. The 10 Year Treasury Bond has not been above … [Read more...]

The Rise of Non-Traditional Real Estate Investment

Turn the clock back a couple of decades, equity investment in real estate meant buying office or retail property. Apartments and industrial property gained acceptance and were followed later by healthcare properties, self-storage and lodging, among others. NAREIT has progressively created new sub-sectors of its Index and most recently created separate categories for data-centers and infrastructure companies (principally cell towers). Currently, the NAREIT Index (equity REITs) is divided into 12 sub-sectors. The institutional acceptance over time of new types of property has been a notable … [Read more...]

Potential Real Estate Impacts from the Election

The current US presidential debate gives every appearance of being policy-lite but look hard enough and it is possible to see some proposals for changes by the leading candidates amidst the personal insults and mud-slinging. We consider some proposals that if enacted could have a material impact on real estate markets. We are mindful that ‘pre-election promises’ are not always delivered or can be ‘watered-down’. This is a fact of life if the election outcome produces a ‘divided’ House, Senate and White House, as seems likely/possible this year.   Policy Change & Potential … [Read more...]

HITR Income Study

"Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it." — Albert Einstein   In an environment of increased volatility, there is comfort to be found in the income component of the Uniplan High Income Total Return (HITR) Portfolio. The theory is that principal values may move up and down, but income is a component of return that remains relatively stable and consistent over the life of the portfolio. And the income stream should grow over time as the portfolio value increases and distributions from portfolio companies … [Read more...]