Co-Star: Retail real-estate sector posted positive net absorption in first quarter
Washington, D.C. — The retail real estate sector posted positive net absorption, a stable vacancy, and a near-stabilization of rent for the first quarter of 2012, according to the latest research from CoStar Group.
For the first quarter, vacancy nationally was unchanged at 7%, compared with 7.3% one year earlier. Net absorption of 9.4 million sq. ft. was below the 16.2 million sq. ft. in the fourth quarter. Retail completions were exceptionally low at just 4.3 million sq. ft., with a Salt Lake City urban retail project being one of the largest deliveries this quarter.
“We forecast completions of retail space to remain depressed for the year,” said Walter Page, director of research for CoStar’s property and portfolio research. “In-process construction continues to fall compared to office and warehouse construction, which is rising slightly.”
At the metro level, retail performance was more of a mixed bag than other property types, with few standout markets. For example, market rent over the past year ranged in a narrow band with most markets showing a -5% to +2% change, as the impact of housing market distress and Internet retailing has curtailed demand growth. For the quarter, roughly one-third of the markets recorded negative net absorption, suggesting that the retail recovery is still weak. Market vacancy rates range from 2.8% in San Francisco to 12.1% in Phoenix.
Supervalu names new heads for Albertsons Southern California, Acme and Cub Foods
Minneapolis — Supervalu on Monday announced three new executive appointments following the departure of Sue Klug, president of its Albertsons Southern California division.
Dan Sanders has been tapped to head Albertsons Southern California, Keith Wyche will lead Acme and Brian Audette has been named president at Cub Foods.
Replacing Klug will be Sanders, current president of Supervalu’s Acme Markets division, based in Philadelphia. Sanders joined Acme in 2010 from United Supermarkets, Lubbock, Texas, where he served as CEO.
Wyche will succeed Sanders as president of Acme. He currently serves as the president of Supervalu’s Cub Foods division.
Taking over for Wyche at Cub Foods will be Audette, who joined Supervalu in 1991, and most recently served as group VP merchandising transformation and process improvement.
Big Lots deploys Envysion solution to improve loss prevention ops
Louisville, Colo. — Envysion, a leading managed video as a service (MVaaS) provider, announced that Big Lots has selected Envysion as a video service provider and has completed deployment of the Envysion Insight solution to approximately 1,200 of its retail stores.
Big Lots will utilize the Envysion Insight solution to improve loss prevention, operations and training efforts.
“Successful loss prevention professionals recognize that theft is only one of many factors that reduce profitability. With that in mind, we wanted a video tool that would give us a more comprehensive understanding of store-level operational challenges,” says Lance Williams, director of loss prevention at Big Lots. “Envysion enables us to give hundreds of users from our operations, marketing, risk management and HR teams enhanced visibility to the store.”