Wisconsin Chapter Appraisal Institute

1
Wisconsin Chapter Appraisal Institute

• Year in Review
• November 19, 2008

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Retail Market Overview
Driven by Retail Sales
Driven by Capital
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Retail Sales

• August, September, October

Each worse than previous year by 1.0 1.2
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Comparable Store Sales
Abercrombie Fitch - 20.0 Gap
- 16.0 Nordstrom - 15.7 JC
Penny - 11.8 Kohls - 9.0
Target - 4.8 Walmart
2.0
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Retail Bankruptcies Closures
Circuit City Linens N Things Steve
Barrys Boscovs Sharper Image
148,000 retail stores will close in 2009
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Capital Sources
Debt Equity
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Debt
CMBS Volume
2007 210.2 Billion
2008 12.1 Billion
Down by 90!
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CMBS Market Statistics 10/30/08
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Bank Lending
Liquidity Crisis 700 Billion Bailout Banks
Wouldnt Use Money to Lend Bailout Directed
Elsewhere
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Impact on Developers
General Growth Bankruptcy?? DDR Halts
Development Kimco Halts Development Vornado
Realty Trust Halts Development
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Local Impact
Suspended transaction volume. Store openings
delayed until 2011. Sleep drop in land values but
there wont be transactions to prove it. Rising
cap rates for sales that occur.