Welcome to Bite Size Breaking News. We post every other Monday by noon. Have lunch with The Sinreich Group and get the latest real estate news in easily digestible “bite size” portions.
The Open Floor Plan Debate Continues
Real estate representatives from Google, LinkedIn and Mathworks recently came together in New York City to discuss the merits and challenges of the open floor plan for office space. Google and LinkedIn are enthusiastic proponents, while Mathworks, a global tech company founded in 1984, is a staunch supporter of private offices. All three acknowledged that it's difficult to measure productivity and thus hard to know whether their floor plan preferences actually help achieve that desired result.
Thousands of Retail Stores Slated to Open in 2019
According to Shopping Centers Today, based on research by Coresight Research, over 2,000 new retail stores are slated to open in the U.S. in 2019. These stores are primarily value oriented, with some cosmetics thrown in, and will include 975 Dollar General stores, 350 Dollar Tree stores, 130 Aldi value grocery stores, 100 Ross Dress for Less stores, 80 Ulta Beauty cosmetics stores, 35 Sephora cosmetics stores, and 60 stores by TJX Companies, which will open T.J.Maxx and Marshalls stores.
But Store Closures Show No Signs of Abating
Notwithstanding the 2019 U.S. expansion plans of value-oriented and cosmetics retailers, projected 2019 U.S. store closures will far exceed openings based on research by Coresight. So far this year, U.S. retailers have announced 4,810 store closures, up 23% from the number of 2018 store closures announced as of this date last year. These closures are the result of bankruptcy filings by Payless Shoe Source (2,100 stores), Gymboree (540 stores); discounter Shopko (251 stores) and apparel retailer Charlotte Russe (94 stores); and sagging sales at the Gap, J.C. Penney and Victoria's Secret. Learn more
Co-Living Picks Up Steam In NYC
The sharing economy knows no bounds and multi-family real estate in New York City is now enjoying a new 'typology' of housing: co-living. Described by some as dorms for adults, 10 different providers now have NYC projects, and while the details vary, in essence co-living means living with strangers. As with Uber and Airbnb, there are some regulatory hurdles, but New York City's Department of Housing Preservation and Development, via its ShareNYC Request for Information, is exploring how co-living may satisfy unmet housing needs in NYC. Learn more
The Anatomy of A Co-Working Deal: What You Need to Know
Please join Ellen Sinreich and her co-panelists on May 1st in New York City for a lively discussion of the leasing, design and construction issues that both landlords and tenants must consider when structuring co-working deals. While the "space-as-a-service" office sector is in high demand, determining where, when and how to set up shop is laced with legal implications that will dictate the success, profitability and viability of these deals. Learn more