Developers Diversified Realty is no more, basically, because retail real estate development is no longer the firm's primary business. To that end, ground-up development isn't ANY retail real estate company's primary objective.
The firm's name is now just DDR Corp., which everyone in the industry always called them anyway. Developers Diversified Realty never really rolled off the tongue all that well. Redevelopers Diversified Realty probably wasn't top in line for the new moniker.
As DDR's President and CEO Daniel Hurwitz explains it: "Ground-up development of new shopping centers, while still part of our business, no longer warrants top billing in our name."
Additionally, the "diversified" part was taken out because the firm wants to position itself as an entity that primarily focuses on value-oriented assets. We take it that means no more major forays into high-end lifestyle centers for DDR.
DDR is not the only major retail real estate firm that doesn't see a future in retail real estate development. Simon Property Group CEO David Simon has repeatedly said that new development isn't happening any time soon for his firm in a big way.
What we find interesting about this name change in DDR's case is the finality of it. To us, it seems that by changing the name the company's executives are saying that the future of the retail real estate industry is one of sparse new development and an emphasis on value.
Is this because of a hardcore recession or a reality that these firms maybe should have faced long ago?
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