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This isn’t to say that mall REITs can’t have Then there are super-regional malls,
a part in your portfolio anymore. Anything which are at least 800,000 square feet
but. However, we’re acknowledging the and have at least three anchor tenants,
great and good along with the bad and one or more of which have to offer
ugly in this report in order to give you luxury or high-end goods.
your best shot at building a bountiful
retirement. Along with those designations, malls
can be deemed Class-A or Class-B
In order to do that, you have to know as institutions based on location, the
much as possible about your investments. exact anchor tenants involved – which
often don’t rent out their allocated
By themselves, malls are classified as space at all but buy it wholesale – and
regional or super-regional structures the average household income in the
depending on how large they are and what surrounding area.
population base they serve. According to Therefore, the surrounding area had
ICSC, regional malls fall between 400,000 better be worthwhile.
and 800,000 square feet in size and feature
two or more anchor tenants such as Last but not least in the retail REIT
Nordstrom (NYSE: JWN). category are freestanding retail REITs,
which are comprised of exactly that –
Or Sears. Or J.C. Penney (NYSE: JCP), neither standalone structures that real estate
of which are doing great right now. Even investment trusts rent out to other
Macy’s (NYSE: M) hasn’t been offering the businesses.
same strong numbers we used to expect
from retail establishments of its size and
weight.
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