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Borders Bookstore Liquidation Puts More Pressure on Commercial Real Estate Market Posted: 21 Jul 2011 05:33 AM PDT The sudden demise of Borders is another hit the commercial real estate market. The market has been buffeted by a huge influx of inventory from 2006 to 2008 followed by the recession that has put many companies out of business. The addition of the 6.3 million square feet of space that Borders will now put on the market is going to exasperate an already tough situation. The vacancy rate at community shopping centers is already at 11 percent, just off the all time high, or nearly 860 million square feet of space nationally. That is a great deal of investment not earning any income. The Borders bankruptcy is just going to exasperate an already bad situation. Borders Group Inc.’s proposed liquidation will increase available U.S. retail space by about 6.3 million square feet (585,000 square meters) as the industry struggles with near-record vacancy rates and stagnant rents. DJM Realty LLC plans to auction 259 Borders leases in two separate sales, likely in August and September, said Andy Graiser, co-president of the Melville, New York-based property- consulting firm. That’s on top of about 225 stores the book retailer began closing after its February bankruptcy. About 859 million square feet of U.S. store space is empty, according to CoStar Group Inc. Retailers have cut back amid online competition and a national unemployment rate of more than 9 percent. Borders’ liquidation is the latest to add vacancies after more than a dozen national retailers sought bankruptcy protection since the recession in 2008 and 2009. via Bloomberg Thanks for reading this post. If you would like to see more articles like this, please come visit The Real Estate Bloggers. where it was originally published. Borders Bookstore Liquidation Puts More Pressure on Commercial Real Estate Market Related posts: Commercial Real Estate Boom in Bolder With New Medical Marijuana Leases The retail commercial real estate market has been overbuilt the... America’s Top 10 Most Empty Cities in 2011 Vacancies, empty homes, zombie  subdivisions, foreclosures, and REO. This is... Google Buying Manhattan’s 111 Eight Avenue for 2 Billion Dollars One of the largest buildings in Manhattan is expected to...

Zillow Shares Soar on Initial Public Offering Posted: 21 Jul 2011 05:23 AM PDT It is great to see one of the leaders in real estate internet marketing have a great day. The home finding site is today’s darling of Wall Street after nearly doubling the price of their shares during their first day of trading. Zillow’s initial price for their shares was $20 but after feverish trading the price doubled to $40 per share until fading later in the day. What makes this IPO even more interesting is Zillow is still not profitable. Investors were enthralled with the model and the potential for the online real estate listing and valuation service. Now my personal take is that even though Zillow has shown great innovation and potential, it still has not made any money yet. The advertising market for real estate is in the doldrums and the sector has not recovered to the levels that it was at when the company launched. I am not saying the company will not be profitable, I can see that happening in the next year or so. I just think that those that bought at a $40 a share valuation were caught up in the IPO fever. That euphoria that the next day makes you question your very existence. Been there, done that as the kids used to say back in 2000… Zillow has a great future. They were smart to come out with their Zestimates as a marketing tool that placed them firmly on the map. They understand lead generation and that I see is the potential of their model moving into the future as the real estate advertising space continues to be saturated. They will be profitable. But what I am afraid of is that when the shares come back down to the realistic price of $20–$25 a share the media does not beat Zillow up for losing half of it’s unrealistic value from some exuberant investors. Thanks for reading this post. If you would like to see more articles like this, please come visit The Real Estate Bloggers. where it was originally published. Zillow Shares Soar on Initial Public Offering Related posts: Putle Homes Showed Profit in Second Quarter The tax incentive has shown a short term victory for... Collusion at a Foreclosure Auction Leads To Charges Foreclosure auctions are a large part of the real estate...

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