Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post

ranchlandsselling · 09-11-2011, 07:47 PM

A few things
1. Someone mentioned Sears - if you're thinking about the 16th ave location at Northill - the reason that store is still there and looks that way is Sears owns the land. So it's not you're typical retail shop where
a. the landlord is going to find the best tenant or whoever will pay the most rent
b. the landlord isn't going to offer tenant improvements to fix up the space to land a great tenant or a tenant pay a high rate with improvements accounted for.

2. Old malls like deerfoot, or that awful zellers off bow bottom.
a. Deerfoot mall is going to be totally re-developed and semi-de-malled. They've got walmart in there and a lot should be changed over the next few years to improve it.
b. Other malls like sunridge and why their still in existence. The old layout of malls was an anchor (bay, zellers, sears, woodwards, etc.) at either end of the mall, they'd sign an outrageously cheap rate and the rest of the mall would survive based on traffic from these monster dept. stores. Some of these leases are for a few bucks, a sq. ft. vs. the $25 - $50 they'd get now (for space that large), smaller tenant mall space is obscenely expensive. These leases go on for 20-30 more years at these rates with renewal options in favour of the tenants. That's why Zellers was able to sell some stores. The business is worth DICK ALL, but the lease, which in a sense is a liability they have to pay, is actually an incredible asset because "good luck getting that lease rate in Market Mall, or etc." Some of these retails will stay open in a mall, even if their store loses money and will re-open close by, just because they have a dirt cheap lease rate and they don't want to leave and let someone else open in there. Some poor malls have even died because a tenant like Walmart may open a new store down the street if better space becomes available and just go dark in the old location but still pay the bills. It's better for them to pay the bills, not let a competitor in the spot and just lose money on that location. Sunridge mall is never going under (at least not anytime soon) because they've got plenty of tenants in there that will pay to be in there and their major anchor tenants are paying the bills and will continue to do so becaues their space is that cheap. The owner of the mall is making money on that, paying the bills perfectly fine.

Finally radio shack, they closed the US, or at least circuit city went bankrupt and I remember reading an interview from the CEO who pretty much said the Canadian Radio Shack does well, he has no idea why and how, but it makes decent money for some reason. hahaha. It was pretty funny!

09-11-2011, 07:47 PM	#251
ranchlandsselling Powerplay Quarterback Join Date: Jan 2011 Exp:	A few things 1. Someone mentioned Sears - if you're thinking about the 16th ave location at Northill - the reason that store is still there and looks that way is Sears owns the land. So it's not you're typical retail shop where a. the landlord is going to find the best tenant or whoever will pay the most rent b. the landlord isn't going to offer tenant improvements to fix up the space to land a great tenant or a tenant pay a high rate with improvements accounted for. 2. Old malls like deerfoot, or that awful zellers off bow bottom. a. Deerfoot mall is going to be totally re-developed and semi-de-malled. They've got walmart in there and a lot should be changed over the next few years to improve it. b. Other malls like sunridge and why their still in existence. The old layout of malls was an anchor (bay, zellers, sears, woodwards, etc.) at either end of the mall, they'd sign an outrageously cheap rate and the rest of the mall would survive based on traffic from these monster dept. stores. Some of these leases are for a few bucks, a sq. ft. vs. the $25 - $50 they'd get now (for space that large), smaller tenant mall space is obscenely expensive. These leases go on for 20-30 more years at these rates with renewal options in favour of the tenants. That's why Zellers was able to sell some stores. The business is worth DICK ALL, but the lease, which in a sense is a liability they have to pay, is actually an incredible asset because "good luck getting that lease rate in Market Mall, or etc." Some of these retails will stay open in a mall, even if their store loses money and will re-open close by, just because they have a dirt cheap lease rate and they don't want to leave and let someone else open in there. Some poor malls have even died because a tenant like Walmart may open a new store down the street if better space becomes available and just go dark in the old location but still pay the bills. It's better for them to pay the bills, not let a competitor in the spot and just lose money on that location. Sunridge mall is never going under (at least not anytime soon) because they've got plenty of tenants in there that will pay to be in there and their major anchor tenants are paying the bills and will continue to do so becaues their space is that cheap. The owner of the mall is making money on that, paying the bills perfectly fine. Finally radio shack, they closed the US, or at least circuit city went bankrupt and I remember reading an interview from the CEO who pretty much said the Canadian Radio Shack does well, he has no idea why and how, but it makes decent money for some reason. hahaha. It was pretty funny!