1 / 15

Retail Real Estate Markets in Connecticut

Retail Real Estate Markets in Connecticut. Presented by: R. Michael Goman President & Chief Executive Officer Konover Development Corporation. Industry Outlook & Upcoming Holiday Season . Same-Store Sales January 05-September 06. Source: ICSC.

zareh
Download Presentation

Retail Real Estate Markets in Connecticut

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Retail Real EstateMarkets in Connecticut Presented by: R. Michael Goman President & Chief Executive Officer Konover Development Corporation

  2. Industry Outlook & Upcoming Holiday Season

  3. Same-Store Sales January 05-September 06 Source: ICSC

  4. Same-Store Sales 2006 YTD Growth Rates by Category Source: ICSC

  5. Largest Retailers’ Same-Store Sales2006 YTD Growth Rates Source: ICSC

  6. The Luxury Market • Well-heeled consumer and Moderate income consumer selectively “trading up” • High-end and “accessible” luxury • ICSC’s luxury index 2006….+5.8% 2005….+6.2% 2004…..+9.6% • Distinct market opportunity: clear product differentiation and relatively “recession-proof” • High-end anchors filling middle-market department store space attracting upscale specialty stores

  7. New Retailers are Filling Gaps & Driving Occupancy Growth • Retailer bankruptcies down • Poor performers being taken private • Established retail names still growing and creating new concepts; e.g. “Soma,” “Forth & Towne,” “Jimmy ‘Z” “One Thousand Steps” “Martin + Osa” “Cusp”

  8. Small Center Challenges • Sears/Kmart turnaround still a concern • Middle market grocery chains are coming to grips with their competitive challenges • Living with extreme discounters/wholesale clubs

  9. Open-Air CentersRetail Chain Store Growth, 2001-2005 Source: ICSC

  10. 2006 Holiday Season • Positive one for Nation’s Retailers • For November-December, ICSC forecasting an increase of +3.0% vs. 3.6% in 2005 • Gift cards are extending the holiday season • For November-January, ICSC is forecasting an increase of +3.5%

  11. 2006 Holiday Season • Gift Cards – Not recorded until redeemed • Gift Cards and Holiday Expenditures • 2003 = 13.5% • 2004 = 14.4% • 2005 = 12.0% • For 2006, likely to capture between $30 and $40 billion in holiday expenditures

  12. Total Returns—Privately Owned Property

  13. Total Returns—REITs

  14. Format Evolution • Distinctions blurring between center types; combining best features of different formats • New formats challenge the traditional shopping center definitions • Developers are densifying the trade area of existing centers by adding residential, hotel and office • Mixed-use and master planned communities are becoming commonplace - hundreds in the pipeline

  15. Retail Real EstateMarkets in Connecticut Presented by: R. Michael Goman President & Chief Executive Officer Konover Development Corporation

More Related