Posted May 20, 20205 yr I think the retail sector will have some of the longest term pandemic affects. I could see this having a devastating mark on suburban communities where retail jobs are clustered. These municipalities can expect lower collections in both income tax revenue (due to lost jobs), and sales tax (lower sales) - a double whammy. The suburbs were already severely overbuilt and I feel this Pier 1 announcement is just the beginning. Who is going to fill all of the gaps left behind? https://www.cbsnews.com/news/pier-1-close-all-540-stores/
May 20, 20205 yr ^Articles like this never mention the exploded popularity of thrift stores. In Pier 1's case it was probably the main thing taking them down for a long time. But no, the article just goes straight to Amazon and Wayfair.
May 21, 20205 yr Author North Olmsted finance director discusses projected city losses due to economic downturn NORTH OLMSTED, Ohio -- The economic downtown due to COVID-19 is providing municipalities with an uncertain financial forecast as tax collection amounts decrease and ancillary revenue streams dwindle. For a snapshot of where the city is currently at and where it could be headed, Finance Director Carrie B. Copfer recently told city council that North Olmsted -- which is already $400,000 behind in net profits from last year -- expects to lose almost $1.8 million in the general fund from income tax collections. https://www.cleveland.com/community/2020/05/north-olmsted-finance-director-discusses-projected-city-losses-due-to-economic-downturn.html Edited May 21, 20205 yr by Clefan98
May 21, 20205 yr A Cleveland dot com reporter actually used the term "net profits"?? And "profits" are never on any public finance balance sheet. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 21, 20205 yr 19 hours ago, GCrites80s said: ^Articles like this never mention the exploded popularity of thrift stores. In Pier 1's case it was probably the main thing taking them down for a long time. But no, the article just goes straight to Amazon and Wayfair. Is there any actual data that shows an explosion in thrift store shopping?
May 21, 20205 yr Up 2.3% per year on average since 2014 per IBIS. I want numbers going back to 2000 though since that seems like around the time people didn't look down on the place as being only for hippies or people on the dole. https://www.ibisworld.com/united-states/market-research-reports/thrift-stores-industry/ "Both for-profit and nonprofit thrifts are riding an extraordinary change in Americans’ shopping habits. From the beginning of the Great Recession in late 2007 until midway through this year, sales at thrift shops and consignment shops increased by 50 percent. Meanwhile, discount department store revenues fell by half and traditional department stores lost one-quarter of their sales, according to the U.S. Census Bureau." - 2015 article https://www.invw.org/2015/10/28/thrift-store-industry-thrives-with-its-do-good-veneer/ Edited May 21, 20205 yr by GCrites80s
June 15, 20204 yr Author Notable Northeast Ohio shopping centers are feeling the pinch of pandemic-induced pain The Great Northern Mall in North Olmsted and Pinecrest mixed-use center in Orange Village are in fiscal distress in vastly different arenas. Great Northern, the 1972 enclosed mall that put the suburb west of Cleveland on the map as a shopping destination, is in play in Israel. It's one of five malls that Starwood Retail of Chicago used to back a $254 million bond issue sold in 2018 on the Tel Aviv Stock Exchange. Investors declared the bond in default June 6, according to TASE filings. https://www.crainscleveland.com/real-estate/notable-northeast-ohio-shopping-centers-are-feeling-pinch-pandemic-induced-pain
June 15, 20204 yr On 5/20/2020 at 3:06 PM, Clefan98 said: I think the retail sector will have some of the longest term pandemic affects. I could see this having a devastating mark on suburban communities where retail jobs are clustered. These municipalities can expect lower collections in both income tax revenue (due to lost jobs), and sales tax (lower sales) - a double whammy. The suburbs were already severely overbuilt and I feel this Pier 1 announcement is just the beginning. Who is going to fill all of the gaps left behind? https://www.cbsnews.com/news/pier-1-close-all-540-stores/ Pier 1 filed for bankruptcy in mid Feburary, so I don't think COVID-19 had much to do with their struggles.
March 19, 20241 yr Cleveland suburban office market ‘bloodbath’ By Ken Prendergast / March 19, 2024 The numbers are downright ugly. High office vacancy rates and even higher availability rates exceeding 20 percent owing to a big jump in office spaces available for sub-lease. Numerous Class A office buildings are for sale with few if any interested buyers. For those in a buying mood, their lowball interest may be only for the land to hold for a possible conversion to new uses or for the hopes that better days may return to the office market — someday. MORE: https://neo-trans.blog/2024/03/19/cleveland-suburban-office-market-bloodbath/ "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 19, 20241 yr I just read an article about the downtown Pittsburgh office market. It said something between a third and a half of their downtown office space was in trouble. I know we can't put the genie back in the bottle but...damn WFH is reaping havic on much of downtown America. I wonder if SHW will even build phase ll. If they do they will really be swimming upstream compared to much of corporate America.
March 19, 20241 yr WFH is good for the individual but bad for society. Like a lot of things we do here in the US, really.
March 19, 20241 yr 47 minutes ago, cadmen said: I just read an article about the downtown Pittsburgh office market. It said something between a third and a half of their downtown office space was in trouble. I know we can't put the genie back in the bottle but...damn WFH is reaping havic on much of downtown America. I wonder if SHW will even build phase ll. If they do they will really be swimming upstream compared to much of corporate America. I would be worried if SHW didn't keep filling more office buildings in Cleveland. The point of the article is that the 'bloodbath' is happening in all submarkets, not just downtown. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 20, 20241 yr Sort of an extension of dead malls. There really is no magic cure except for suburbs either reimagining some of these commercial developments or preparing for large-scale abandonment. Maybe even subsidizing RTO.
March 20, 20241 yr Historically true, but now that construction costs are so high all buildings in decent shape have value even if it isn't for their original use. Suburban office is tougher than a mall even but someone really creative could come up with a residential solution in areas with moderate to severe housing shortages -- which is quite common today.
March 21, 20241 yr On 3/19/2024 at 9:57 PM, GCrites said: Historically true, but now that construction costs are so high all buildings in decent shape have value even if it isn't for their original use. Suburban office is tougher than a mall even but someone really creative could come up with a residential solution in areas with moderate to severe housing shortages -- which is quite common today. Why you aren't likely to see suburban office buildings turned into apartments it just isn’t really feasible in the suburbs
March 21, 20241 yr On 3/19/2024 at 9:57 PM, GCrites said: Historically true, but now that construction costs are so high all buildings in decent shape have value even if it isn't for their original use. Exhibit A, property immediately adjacent Legacy Village shopping: https://www.freshwatercleveland.com/breaking-ground/TRW_Lyndhurst_110923.aspx Apparently, that building did not have such value.
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