June 30,
2010 by in UnCategorized 
By Home Furnishings Business in on July 1, 2010
Location, location, location.
Weve heard those words in relation to real estateboth residential and commercialsince most of us have been cognizant of the processes involved in home buying or business locating.
Many a retailer has felt the squeeze when consumer shopping patterns shift or the latest, greatest power center opens up across town, leaving a former prime location stuck in the middle of a ghost town. With the economy of lateand especially last yearthat tried-and-true mantra of real estate is taking on a new twist.
The new saying about town for real estate strategy could just be relocation, relocation, relocation.
While all of the economy was taking a beating this time last year, commercial real estate was facing challenges all its own.
According to Reis, provider of commercial real estate market information, the second quarter of last year neighborhood and community shopping center returned 8.14 million square feet into the mix of vacant space. Reis said that was the highest quarterly level of negative absorption it had ever reported.
The national average vacancy rate rose 50 basis points to a record 10 percent. During the squeeze in revenue, landlords and property owners, in light of climbing vacancy rates, were forced to lower rents by an average of 0.6 percent, the largest single quarter decline since 1999. Rental prices for last year fell more than 4 percent.
Fast-forward to present day, and the latest figures from the National Association of Realtors (NAR) predict more of the samehigher retail vacancy rates and lower rental rates.
According the association, retail vacancy rates should rise from 12.6 percent in the first quarter of this year to 12.8 percent in the first quarter of 2011, and should hold at that level for most of next year. The group goes on to say that average retail rent is projected to decline 1.5 percent in 2010, then edge up by 0.4 percent next year.
Net absorption of retail space in 53 tracked markets is likely to be a negative 3.7 million square feet this year and then a positive 8.9 million in 2011, according to NAR.
No doubt many of those vacancies have come from the many, many furniture and decorative accessories retailers that have shuttered stores during the topsy-turvy economy. Sad news, indeed.
Looking ahead, theres a glimmer of hope in the bleak real estate outlook. The glut in the commercial real estate marketcoupled with lower rental ratescould be a hidden gem for ambitious, bullish retailers looking to position themselves for the economic recovery.
Some retailersyes, weve spoken with a few of them this issuehave already had the opportunity to snap up some strong real estate deals, despite the rocky fits and starts our industry has seen this year.
Inside, youll find their stories, their rationale and reasoning for stepping up in less-than-ideal market. In addition, a number of seasoned commercial real estate experts peer into their crystal balls for a glimpse into whats down the line for retail real estate, and even how to negotiate the best deals.
Weve pulled together an amazing amount of information, so sit back and devour it. As always, were sure youll find chunks of information that will be useful.
June 29,
2010 by in UnCategorized
By Home Furnishings Business in Advertising on June 30, 2010
A long set of stairs, or a giant, sleek slide? Which would you choose.
Volkswagen gave subway travelers that very option when it created a super-sized, red slide adjacent to stairs and an escalator headed down to the station. The automobile supplier has a viral marketing program in place that includes a number of videos playing on the keywords Fast Lane to promote its Polo GTI.
The series of videos are catching on via YouTube and the company's
Facebook page.
For a mid-week smile, check this out. Enjoy!
June 29,
2010 by in UnCategorized
By Home Furnishings Business in Green on June 30, 2010
The American Home Furnishings Alliance sent notification to members Tuesday that it appears the California Air Resources Board has initiated its finished product compliance efforts.
An AHFA member company had reported that two of its products were purchased by CARB officials from an Industry, Calif., "big box" discount store in June. One product was produced domestically; the other was produced off-shore, and both products were labeled as CARB-compliant.
CARB asked the retailer to produce the required chain-of-custody documents within 14 days. The retailer subsequently notified the manufacturer. The manufacturer tells AHFA it has supplied the retailer with the necessary documentation and believes both units will pass CARB's emission testing.
CARB's extension of sell-through dates for pre-Phase 1 composite wood products, pre-Phase 1 finished goods and Phase 1 hardwood plywood with veneer core remains in effect, but any product that is labeled as compliant is "fair game" for CARB enforcement efforts. Although the regulators do not have a deconstructive testing protocol, they can still test exposed surfaces. The chain-of-custody paperwork requirements obviously are also subject to compliance efforts.
"Pre-Phase 1 products" include composite wood product panels manufactured before Jan. 1, 2009, that do not comply with the Phase 1 emission standards specified in the CARB formaldehyde emission standard. "Pre-Phase 1 finished goods" refers to finished goods made with pre-Phase 1 composite wood products.
In November last year, CARB announced it would extend the sell-through dates for pre-Phase 1 composite wood panels, finished goods made with pre-Phase 1 panels, and Phase 1 compliant hardwood plywood with veneer core to Dec. 31, 2010. During this grace period, CARB regulatory staff is not referring these products for penalties or taking other enforcement actions against distributors, importers, fabricators or retailers.
AHFA was among industry groups that successfully argued for the extension in the sell-through time because of the slow economy and its impact on inventories.
June 29,
2010 by in UnCategorized
By Home Furnishings Business in Retail Closings on June 30, 2010
A partnership affiliated with the Kansas Sampler stores has bought the 40,000-square-foot Feist Furniture store building in Lenexa, Kan., the Kansas City Business Journal reported Tuesday.
A new Kansas Sampler store is scheduled to open later this summer in the former furniture store in Broadway Plaza, whose other tenants include Footlocker, Weight Watchers and other retailers and restaurants.
The property had been listed for $3 million.
Feist Furniture & Design held a closeout auction June 24.
June 29,
2010 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on June 30, 2010
Brianne Sheppard has won a Father's Day story contest at Case Furniture Gallery in Vernon, B.C.
Case Furniture Gallery hosted the June contest so customers share stories and memories of their dads. People across the Okanagan area, including the communities of Vernon, Kelowna, Salmon Arm, Armstrong, Enderby and Penticton, had a chance to enter to win a Danby beverage dispenser for their dad. In order to enter the contest, the person needed to write a story explaining why their dad is the greatest.
Case Furniture Gallery announced the winning story on Fathers Day, June 20th.
Jody said, "It was a hard decision as there were so many great stories, but they finally decided on Brianne Sheppard's story."
Sheppard's story spoke of father-daughter memories from growing up. She plans on framing the story along with a photo of her dad drinking a glass of chocolate milk from his dispenser to give to him as a present.
Case Furniture Gallery also has two Ashley Furniture HomeStores located in Enderby and Kelowna.