Friday, May 01, 2020

Dominoes

BBC: Coronavirus: Shopping centre giant threatens brands over rent

When making money in good times is hard, then how do you survive in lean times?
Now the customers can't/won't pay ever pay rent, the landlord is in trouble.
When enough landlords can't pay rent, the banks are in trouble.
Dominoes keep failing. Where can we get similar figures for residential landlords?

Posted by deepak @ 06:41 PM (1592 views)
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4 Comments

1. crash bandicoot said...

It's difficult to see where this will end up, apart from not back to where it started. Shopping as a passtime has declined in popularity over the past ten years, leading to the loss of once great high street institutions. I think that the end of Debenhams was hastened by lock-down but not caused by it.

I understand the desire to try before you buy in some cases, but too many people are buying online after trying and we are all becoming more used to buying online. Sight unseen doesn't hold the same fear that it used to.

Rejuvenation plans were aiming to make shopping in town centres an "experience" but selling the chance pay over the odds for something because you can get an overpriced cup of coffee and a burger-chain meal at the same time is a difficult ask. And with the lock-down removing phobias about remote working and video conferencing I'd expect the demand for office space in town centres to fall as well. Will this be the end of the CBD for all but the biggest cities? Once shopping and working is done remotely what else needs to be in the town centre? Hospital? Theatre? Restaurants? I can see the attraction for keeping some of those in historic buildings, but they would be easier to use if they were closer to homes and easy transport links.

Saturday, May 2, 2020 01:43PM Report Comment
 

2. tenyearstogetmymoneyback said...

Well they can't blame council parking charges at The Mall as they own the car park. Supply and demand is a problem. That entire shopping centre was built in the 1990s just over the Bristol /Gloucestershire border to steal trade from Bristol City Centre.

I think a major problem is that people don't spend as much on things as they used to. Back in 1989 I spent £450 on a 25" TV in Dingles. It wasn't even a top of the range model. According to the BoE that is £1125 in 2019 money. During the late 80s housing boom a colleagues observation was that as the price of things like TVs fell (down to a mere £450) people could afford to pay more for their houses.

I wonder what profit Dingles made on that TV. Nowadays, most "Department Stores" aren't selling nothing more than apparel, and kitchen goods. you can get all that in TK Maxx

Monday, May 4, 2020 09:39PM Report Comment
 

3. stillthinking said...

Does anybody remember Blackpool council handing over 60 million in borrowed funds for a shopping centre?

https://www.housepricecrash.co.uk/newsblog/2019/11/blog-what-is-the-real-price-217368.php

Thursday, May 7, 2020 03:29AM Report Comment
 

4. deepak said...

@stillthinking
I have been tracking Real Estate investment trusts. Even in the last so called crash that never happened these Commercial real estates started to fall before hand.
In 2011-12, after the bailouts of asset holders these started to fail again, and then came the govt "Funding for lending" scheme. Something or the other policy was announced every day for these bad investments to stay afloat.

Maybe now I'm thinking why we have big crashes, because we don't let a regular cleanup take place, so when any crisis comes all the plates being juggled away fall in one go.

Saturday, May 9, 2020 10:13PM Report Comment
 

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