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Real Estate in New York and Beyond
As retailers and developers were preparing to attend the 2010 International Council of Shopping Centers’ New York deal-making convention in New York City, RCS President and CEO Ivan Friedman sat down with Chain Store Age to discuss what's in store for the industry.
Nov 23, 2010 ChainStoreAge.com Katherine Field
Retailers and developers from around the country are preparing to attend the International Council of Shopping Centers’ New York deal-making convention in New York City on Dec. 6 and Dec. 7. Chain Store Age talked with Ivan L. Friedman, president and CEO of New York City-based retail real estate advisory firm RCS Real Estate Advisors, about what the industry has in store for the New York show and beyond.
As retailers prepare to attend the New York deal-making show in early December, how would you describe the current state of retail? Retailers are now resigned to a new paradigm. Their gross margins are up and they have better control of their inventories and other costs. As a result, payroll and other SG&A expenses are down, so we’re seeing retailers that are profitable once again. But sales trends are still very much uncertain as we work against the big 2009 sales declines. In terms of real estate, we’re seeing very limited, more selective expansions by retailers, as well as controlled capital expenditures. Ultimately, retailers are still sitting on their cash.