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This week join Michael Stoler on the television productions of New York Real Estate TV, LLC.

Monday, March 11th, Michael Stoler's guest on "Building New York-New York Life Stories" is Paul Libin, Jujacym Theaters.

On Tuesday evening, March 12th, Building New York-NY Stories will air nationally on Direct TV and JLTV at 9 AM PM (EST) and 12 Midnight.

On Tuesday evening, March 12th, the topic of the Stoler Report-New York' Business Report  is "The Office Market in New York City".

My guests on the broadcasts include David Falk, Michael Giglio, Rick Lyon and James Nelson.
The Stoler Report-New York's Business Report now airs a total of 15 times a week on CUNY TV in New York City and PBS in the region.

Every Monday morning  you will receive the latest real estate article by Michael Stoler on the state of the market an information about the upcoming guests on the productions of New York Real Estate TV, LLC
Michael Stoler

Expect to see growth of hotel-retail mixed use properties

The growing economy is fueling growth of hotel retail mixed use developments. Jim Butler, principal at JMBM Global Hospitality Group, said "We are at the beginning of what looks to be a renaissance of "hotel-retail mixed use" development. Shopping center developers nationwide are exploring the feasibility of adding hotels to existing retail properties, while other are implementing plans that have been in the pipeline. Fueling this trend is research showing that both retailers and hoteliers make huge gains in revenue when they come together in the "hotel-retail mixed use" environment.

In an article Mr. Butler wrote with his partner Guy Maisnik for "Hotel Business" noted that in a research study completed for a major shopping center owner, showed that adding a hotel to a retail center can increase retail sales 20% to 40%. At the same time, the hotel component in a hotel-retail mixed use environment received a 30% to 40% premium in revenue per available room over comparable hotels in the competitive set.

Shopping continues to be one of the preferred activities for travelers. The U.S. Travel Association reports that more than 3 out of every 4 domestic trips in the U.S. are for leisure, and shopping continues to be the #1 or #2 leisure travel activity, year after year..

Creating a vibrant destination appears to be an important element in drawing both traveling guests and local shoppers to the hotel-retail mixed-used development. As hoteliers know, a hotel can be the spark plug for activity that powers the revenue machine.

The hotel-retail concept, they are talking about applies mainly to regional shopping centers and malls with sufficient scale.

In the next few months they believe we will see some of the biggest names in the shopping center and hotel industries announce joint hotel-retail projects. Some will add a hotel component to their existing retail centers. Others will be new ground up construction. Some hotels will be on air rights parcels over existing shopping center structures; others will be adjacent to the shopping center. Shopping center owners and hospitality and retail REITs are taking a serious look at the synergies provided by hotel-retail projects. Hotel owners and operators would also be wise to explore this trend. It's an exciting one for all involved, including the hotel guest and shopper.

REITs continue as an excellent investment

The combination of rising prices coupled with dividends help to attract investors to the REIT sector in February. The TREPP REIT Café reported that total returns in February were largely driven by dividends, rather than price appreciation. REITs continue to attract investors because their dividends are more appealing than other investment opportunities in the current low interest rate environment.

Free Standing Retail REITs, REITs that own single tenant retail facilities, gained a strong 5.37% in February. Health Care REITs had monthly returns of 5.35%. The 4.44% dividend yield helped to fuel the strong monthly returns.

Mortgage REIT's 11.49% February dividend yield is the strongest in the REIT sector. Despite the strong dividend payout, the sector's total return was 1.65%.  

A number of REIT sectors had February dividend yields in the 3% to 4% range. Boosted by their dividend payouts, manufactured homes (4.32%), shopping centers (3.80%) and office (2.85%) REITs had solid monthly total returns.  

It is interested to note that while the apartment sector in the metropolitan region continues to have the lowest vacancy rates and highest rents in highest, despite strong operating performance, the apartment sector continues to struggle as investors perceive that fundamentals will worsen amidst the strengthening single family housing market and increased multifamily deliveries. Apartment returns for February totaled -0.67% in spite of their 3.86% dividend yield.

For industrial, regional malls, lodging, self-storage and timber REITs, February dividend yields measured between 2.5% and 3.0%.

Can we expect to see grocery stores in the metro market selling apparel in the near future?

Grocery stores profitability margin are less than three percent. Grocery markets in the region have increased their offerings in an attempt to increase their profit margin. Late last year, Kroger, the country's largest grocer, in the company's 129 year history added a dedicated apparel section at its Marketplace store in Mansfield, Ohio.

Business leaders in that market believe that the test will be watched closely by hundreds of independent and national grocers, said Nate Filler, CEO, Ohio Grocers Association.

"There is only about a 1% profit margin in the grocery business, so the best thing you can do is increase traffic in the store," he said. "Others grocers will be taking note to see if this trend they will eventually need to pick up on."

The National Retail Federation, publication Stores reports that three of the hottest areas in retailing right now are groceries, the result of food price inflation and contraction among supermarket operators; trendy fashions, due to recovery in consumer apparel spending, and the intersection of e-commerce and telecommunications mostly because this is in the 21st century. With the growth in the grocery business, especially due to the sale of organic and prepared foods, industry leaders believe the sale of certain apparel in selected markets can aid in growth and profitability.

Coupons motivating consumers to purchase goods and services

In a report issued by the Center for Media Research reported that consumers are increasing their utilization of coupons to purchase goods and services. According to NCH (Marketing Services,) 305 billion coupons were distributed by CPG marketers in 2012.

Consumers' expectations for value in their purchasing decisions remained strong throughout 2012. NCH's August 2012 Consumer Survey found that 79.8% of consumers regularly shop using CPG coupons, similar to the 80.6% prior year result, and well above the 63.6% in the pre-recession 2007 study.

According to the BIGinsight Monthly Consumer Survey in December 2012, 53.7% of consumers continued to focus more on needs than wants while shopping. These surveys confirm that a strong value-oriented mindset has persisted for a large segment of the population despite some improvements in overall consumer confidence measures and unemployment rates in 2012.

Of the 305 billion coupons issued by CPG marketers in 2012, non-food categories comprised 4.4% more of the available coupons than the prior year, with items such as medications, personal care and other household products all distributing a greater quantity. CPG marketers increased the coupons available in non-food categories where consumers tend to delay purchases or have a multitude of national brand and retailer private label choices. Conversely, there were 6.5% fewer food coupons, including products that are purchased frequently.

among those in the survey who said they were using fewer coupons than the year before, 46% of the consumers cited the number one reason was: "I can't find coupons for the products I want to buy."

The consumer experience was primarily the result of CPG marketers shifting more of their coupons in 2012 to products that were new to the market. Kantar Media measured a 23.2% increase in new product introduction events with Free Standing Insert (FSI) coupons in 2012.  

Coupons have been effectively used to generate trial of new products for 125 years, notes the report.

CPG marketers used free standing inserts to distribute the largest volume of all their coupons in 2012, increasing the media's share to 90.1% of the 305 billion coupons issued.  

In total, digital remains less than 1% of all coupons distributed, including those printed at home and paperless offers downloaded to loyalty cards or mobile devices.

Print-at-home coupons are now nearly 6% of all coupons redeemed in the U.S., says the report. Beyond print-at-home, paperless coupons are being made available via retailer websites to download offers primarily as a feature of a retailer's loyalty card program. All paperless vehicles combined, including mobile, have grown to represent a little more than 1% of all coupons redeemed.

2.9 billion coupons were redeemed in 2012 for CPG products in the U.S., down 17%, an inconsistent year-over-year result that was created by marketers' strategy-shifts. While this reduced volume saved marketers a substantial $800 million in face value discounts, it also raised the cost of per unit items that benefit from higher volume efficiencies, such as retailer redemption handling, auditing and settlement services.

This Week on "The Stoler Report-New York's Business Report"

 Premiering:  Tuesday,  March 12th at 11 PM

The Stoler Report: Real Estate Executives Outlook on the Office Market in New York City


David Falk            Newmark Grubb Knight Frank      

Michael Giglio     Kaufman Organization

Rick Lyon            Capital One Bank

James Nelson      Massey Knakal Realty Services 

The Stoler Report-New York Business Report airs 15 times a week on CUNY TV and PBS

Tuesday:                        2:00 AM,  11:00 PM, CUNY TV
Wednesday:                   8:30 AM, 2:30 PM, 10:30 PM, CUNY TV
Friday:                           5:30 AM CUNY TV
Friday                            7:00 PM  WLIW 21
Saturday                       10:00 AM  THIRTEEN-WNET
Saturday                        6:30 PM  WLIW WORLD
Sunday                         12:00 AM  CUNY TV
Sunday                         10:30 AM  WLIW 21
Sunday                         10:30 AM  CUNY TV
Monday                          4:30 AM  WLIW 21
Friday                            7:30 AM, 1:30 PM, WLIW World

Broadcasts are available on the Internet at

Michael Stoler Television 


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03/11/2013 - 18:53


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