Market Data

Regional Outlook

National

The Big Deal

Does Cerberus Capital Management’s $3.3 billion purchase of 877 grocery stores from SuperValu threaten the stability of grocery-anchored neighborhood centers? Market watchers predict the real estate management group will close stores in all of the five regional chains it purchased: Albertsons, Acme, Jewel-Osco, Shaw’s, and Star Market. As many as 200 stores in neighborhood centers could shutter, with West Coast chain Albertsons seeing the most closures, said Terranomics research director Garrick Brown to CoStar. Other retail experts peg Pennsylvania-based Acme Supermarkets as a possible closure target. Of the five chains, Chicago area Jewel-Osco is the strongest, with 33 percent of the local market.

South

East

New Jersey’s 2013 Outlook

Home to the nation’s fourth largest office market and third largest industrial inventory market, New Jersey is counting on location and a pro-business climate to help turn around a sluggish real estate investment market, according to a Cushman & Wakefield webinar forecast. “If the Garden State economy were a novel, it would be Dickens’ ‘Great Expectations,’” said Gualberto Medina, C&W executive managing director, New Jersey. Industrial sales were flat last year, with little class A product on the market. In the office market, $1.2 million traded last year, but “the market is choppy in terms of what investors are seeking,” said Gary Gabriel, C&W executive vice president, Metropolitan Area Capital Markets Group. “A core transaction may trade at a cap rate in the sevens for $208 psf, where a value-add asset may trade in the nines for $48 psf.” But he added: “New Jersey is the ultimate contrarian play. We are coming back.”

Midwest

West

Dunkin’ Goes Hollywood

Dunkin’ Donuts is recruiting multistore franchisees to open locations in Los Angeles, Riverside, San Diego, San Bernardino, Ventura, and Orange counties for its long-awaited return to the California market, according to Chain Store Age. After exiting the state in 2002, Dunkin’ Donuts will open its first stores in 2015, with plans for 150 to 200 stores by 2020. While drive-thru locations are a given, the company is also looking into nontraditional venues such as colleges, casinos, military bases, supermarkets, and airports. Nationwide the chain plans to open 330 to 360 stores in 2013, after opening 291 locations in 32 markets in 2012.

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