Developers and Retail Landlords Think Cash Flow and Adaptive Reuse
Talks about a slowdown in commercial real estate have been constant. However, developers and retail landlords are steadily rolling out projects to create value.
NEW YORK CITY – Talks about a slowdown in commercial real estate have been constant. However, developers and retail landlords are steadily rolling out projects to create value, while also thinking about storing cash in the long-term.
“There’s been a consistent flow of projects because people are ready to weather the storm this time,” Rob Budetti, partner at AO Architects, specializing in commercial, retail, hospitality and mixed-use, tells GlobeSt.com. “They are storing away cash and will be ready to do projects.”
In the retail sector, there has been the repositioning of mixed-use projects, such as the commercial consolidation of large retailers such as Sears, Macy’s and JC Penny to maximize usage and create new value, according to Budetti.
The hunt for cash flow through subleasing to keep the ball rolling in the sector is key and has been a noticeable strategy to reduce overhead costs and boost the performance of low performing shopping malls and centers, RC Alley, partner at AO Architects, specializing in multifamily and mixed-use, tells GlobeSt.com. “It’s all about flexibility,” he said. “It helps to create a sense of place.”