NEW YORK CITY – Talks about a slowdown in commercial real estate have been constant. However, developers and retail landlords are steadily rolling out projects to create value, while also thinking about storing cash in the long-term.
"There's been a consistent flow of projects because people are ready to weather the storm this time," Rob Budetti, partner at AO Architects, specializing in commercial, retail, hospitality and mixed-use, tells GlobeSt.com. "They are storing away cash and will be ready to do projects."
In the retail sector, there has been the repositioning of mixed-use projects, such as the commercial consolidation of large retailers such as Sears, Macy's and JC Penny to maximize usage and create new value, according to Budetti.
The hunt for cash flow through subleasing to keep the ball rolling in the sector is key and has been a noticeable strategy to reduce overhead costs and boost the performance of low performing shopping malls and centers, RC Alley, partner at AO Architects, specializing in multifamily and mixed-use, tells GlobeSt.com. "It's all about flexibility," he said. "It helps to create a sense of place."
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
