Uncertain post-pandemic reopening plans threaten real estate market

About This Source - CNBC Television

CNBC is an American pay television business news channel, which primarily carries business day coverage of U.S. and international financial markets. Following the end of the business day and on non-trading days, CNBC primarily carries financial and business-themed documentaries and reality shows.

As of February 2015, CNBC is available to approximately 93,623,000 pay television households (80.4% of households with television) in the United States.

Recent from CNBC Television:

  • We don’t have a fire season, we have a fire year, says Cal Fire director
  • Shorter work week makes a happier workforce and that’s a win-win, says journalist
  • MLB’s Cleveland Indians to become the Guardians, starting in 2022
  • CNBC Television published this video item, entitled “Uncertain post-pandemic reopening plans threaten real estate market” – below is their description.

    The changing nature of in-person and remote work is affecting the commercial real estate market, Empire State Realty Trust CEO Anthony Malkin tells Kelly Evans on ‘The Exchange.’ For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

    The biggest global trade association for the retail real estate industry is rebranding to update its image amid massive changes in the way people shop.

    The International Council of Shopping Centers announced Monday its initials ICSC will now stand for Innovating Commerce Serving Communities. ICSC said the changes have been about nine months in the making.

    The 65-year-old trade group said the shift is indicative of how ICSC, its members — which include U.S. mall and shopping center owners — and the entire retail real estate industry are rapidly evolving, in part due to repercussions of the coronavirus pandemic.

    “The terminology ‘shopping centers’ or ‘retail real estate’ are still clearly an important part of our membership,” ICSC President and CEO Tom McGee said in an interview. “But they’re somewhat descriptive to the historical nature of who our membership was, from a demographic standpoint … the property type that it was. As opposed to the impact that the industry has upon communities.”

    Today, McGee said, ICSC’s membership base is expanding to include other businesses such as technology start-ups and real estate service providers.

    “This is not just a rebranding,” he said. “To me, it’s reflective of what’s happening in the industry as a whole, and within our membership. And we’re evolving with the industry.”

    ICSC also hopes that a major facelift will make the trade association more appealing to a younger workforce.

    “We must modernize the brand to attract new and younger generations to the industry and be more welcoming to emerging businesses and other sectors within [commercial real estate],” ICSC said in a package sent to some members ahead of the announcement Monday.

    The rebranding comes as much of the retail real estate industry is trying to find a new footing coming out of the health crisis. One of the biggest threats to many retail shopping centers and malls has been the ascent of e-commerce.

    Not all properties have been harmed over the past year. Centers anchored by grocery stores and big-box retailers like Target, for example, have thrived as shoppers seek out those businesses for essentials. Others, however — and primarily enclosed shopping malls jammed with apparel boutiques — have lost tenants and watched shopper traffic fall off a cliff. Roughly 25% of America’s 1,000 or so malls have been predicted to close by 2025 as more consumers shift their spending online.

    Visitors are beginning to return. An index of 100 indoor malls tracked by retail analytics firm Placer.ai found shopper traffic was down just 8.1% last month from June 2019, pre-pandemic.

    Landlords face other hurdles in the fundamentals of their business. In parts of the country, rents for retail assets have plummeted, and the amount of available space has skyrocketed, with supply far outweighing demand. Across Manhattan, retail rents have fallen for 15 consecutive quarters and are touching historic lows.

    The vacancy rate for all retail real estate space in the U.S. climbed to 10.6% in the first quarter of 2021, according to research compiled by the real estate firm Newmark and Moody’s Analytics REIS. That marked a high not seen since 2013. More than 3.6 million square feet of retail space was returned to the market in 2020 and 800,000 square feet was returned in the first quarter of this year, Newmark and REIS said.

    Vacancies for U.S. malls hit 11.4% in the first quarter, the highest percentage in a decade, according to REIS.

    » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

    » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

    » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

    Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

    The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

    Connect with CNBC News Online

    Get the latest news: http://www.cnbc.com/

    Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC

    Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC

    Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC

    Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

    https://www.cnbc.com/select/best-credit-cards/

    #CNBC

    #CNBCTV

    CNBC Television YouTube Channel

    Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.

    In This Story: COVID-19

    Covid-19 is the official WHO name given to the novel coronavirus which broke out in late 2019 and began to spread in the early months of 2020.

    Symptoms of coronavirus

    The main symptoms of coronavirus are:

    • a persistent new cough (non productive, dry)
    • a high temperature (e.g. head feels warm to the touch)
    • shortness of breath (if this is abnormal for the individual, or increased)

    Latest News about Covid-19

    Below are stories from around the globe related to the 2020 outbreak of novel Coronavirus – since the WHO gave the Covid-19 naming. Most recent items are posted nearest the top.

    5 Recent Items: COVID-19

  • Strike force launches to identify anti-lockdown protestors | Coronavirus | 9 News Australia
  • China calls for integrity in tracing COVID-19 origin
  • Tonga’s Flag-Bearer Steals Opening Ceremony, NFL’s New COVID Rules | The Tonight Show
  • NSW renews pleas for Pfizer doses as Delta cases hit new record despite Sydney lockdown | ABC News
  • Jacinda Ardern pauses travel bubble | Coronavirus | 9 News Australia
  • Leave a Comment