Pandemic and migration may be not what you think; Tommy Hilfiger, Kohl’s, and the impact on malls; lessons from less glitzy Manhattan neighborhoods’ storefront success; Five Below and the hot market for small-box discount retail; John Oliver and some insight on senior care REITs.
In Today’s News
How the Pandemic Did, and Didn’t, Change Where Americans Move
The pandemic and subsequent work-from-home trend raised the possibility that more workers could move anywhere, potentially scrambling the map of booming and declining places in the American economy, The New York Times says in this article that points out where that actually happened, and didn’t.
The Millionacres takeaway: New York and San Francisco really did see significant out-migration. But for the most part, the pandemic didn’t significantly change migration patterns elsewhere, despite the conventional wisdom in some quarters that people are fleeing big cities en masse across the country.
Kohl’s Tommy Hilfiger Partnership Is Another Blow to Macy’s and Malls
Adding to its growing roster of brand partnerships, Kohl's (NYSE: KSS) on Tuesday said it will bring Tommy Hilfiger men's sportswear to more than 600 stores, as well as an expanded assortment online in the fall.
The Millionacres takeaway: This Retail Dive rundown notes that the Tommy Hilfiger brand has long been a mainstay for mall shoppers and that Kohl’s stores -- unlike Macy’s (NYSE: M) -- are not typically found there. More bad news for the owners and investors in those large, enclosed spaces.
Storefront Vacancy Rates Drop in These Manhattan Neighborhoods
The Wall Street Journal takes a look here [subscription required] at two stretches of street that have done pretty darn well during the pandemic -- and they’re not the iconic, upscale environs in the Big Apple’s big-money neighborhoods.
The Millionacres takeway: While it’s interesting in and of itself, the success story here provides some helpful hints for commercial real estate investors everywhere looking for good opportunities in their own neck of the woods.
Today on Millionacres
This Discount Chain Has Big Expansion Plans
Discount stores have done well during the pandemic, and now Five Below (NASDAQ: FIVE) says it will open between 170 and 180 new stores this year. That's on top of the 120 locations the retailer managed to open up last year.
The Millionacres takeaway: While it’s not a big box, as our Maurie Backman explains, this store and others like it are smallish, reliable tenants in an era when big busts are commonplace. Lots of small victories can add up to one big success for savvy investors able to spot and capitalize on this trend.
John Oliver Beats Up, Millionacres Beats the Bushes, on Senior Care Businesses
The TV host’s recent harsh expose focused on assisted-living and senior care facilities and highlighted pervasive understaffing, overbilling as a business model, and a general lack of regulation.
The Millionacres takeaway: Our Jamal Carnette responded with a look at three different senior care real estate investment trusts (REITs) with different exposures to any possible reform afoot, to help you find the right SHOP (senior housing operating portfolio) that fits your investment strategy.