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Falling Dominoes: How Store Closures Hit Real Estate Investment

February 23, 2016

FEB 18, 2016 @ 08:37 AM | by Ely Razin | Forbes

Store closures by Macy’s, Walmart, Sears and others are all over the news and, with these falling dominoes, what others are at risk? Certainly lenders, owners, investors and other co-located retailers may be… but the fabric of some local communities may also change as a result. Commercial real estate players and CMBS players alike, take note, to ensure that retailers’ falling dominoes don’t nick you.

Envision each store closure as one domino. How many others stand ready in line, just behind it? If and when that domino gets knocked over, what impact could that closure have on the buildings in which they’re located, and on the malls, real estate investment trusts (REITs), commercial mortgage-backed security deals (CMBS) and local real estate markets they touch?

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.