Ira Fierstein and Kwame Benjamin Published In Shopping Center Business

"What is the most pressing issue in your practice?"

Ira Fierstein and Kwame Benjamin were published in REBusinessOnline's sister publication, Shopping Center Business, in the Retail Legal Issues section on June 11, 2007.  Ira and Kwame provided response to the question, "What is the most pressing issue in your practice?"

Ira notes, " One of the most disconcerting trends, which has become more and more troublesome to retail real estate owners/developers, is the inability of the private owner to locate and acquire existing properties. With the increasing availability of investment capital and the interest in shopping centers by private equity funds and national REITs, very little retail properties are available for purchase... new investors are snatching up all available mall portfolios as soon as they come on the market and are holding on to these properties for long terms. As a result of this problem, many private owners are forced to purchase less desirable shopping centers with potential for expansion and redevelopment, or merely purchase vacant land and construct ground-up developments"

Kwame points out  that, "The continuing trend toward more high-density developments is an important issue facing retailers today. Urban infill projects, which are increasingly mixed-use in nature, present new opportunities for retailers. However, retailers are being forced to modify their traditional perceptions of the retail shopping environment. Mixed-use and infill projects are believed to serve as a draw for customers and end users and result in increased traffic for retailers, but these projects sometimes require that retailers adjust their prototypical buildings by utilizing smaller, more specialized structures and designs or multiple level concepts. This can result in increased construction costs. Also, the proposed neighbors of the retailers and their competing interests must be considered, such as parking uses of and ‘after hours’ traffic generated by bars, nightclubs, restaurants and movie theaters. "