Gap closing hundreds of stores, hotels into apartments, reeling REITs, Party City not investing in Halloween so much, and a look at a millionaire-making REIT.
In Today’s News
More bad news for the beleaguered brick-and-mortar crowd as Gap (NYSE: GPS) announces plans to close 350 Gap and Banana Republic stores, including about 225 in the next year.
Why it matters: Wall Street loved the news, driving up the company’s stock, but retail REITs, and those who own them, may not feel the same about the coming gap in those portfolios if these stores are currently their tenants.
The hotel business is in a world of hurt. Could some of these depressed properties get new life as apartments? It’s happening already.
Why it matters: This GlobeSt.com piece focuses on the Los Angeles market, but I know of at least two such conversions here in little Columbia, South Carolina and can imagine it might look like an attractive repurposing elsewhere.
On the other hand, according to Moody’s Analytics REIS, apartment vacancies have risen to their highest level since 2012 and a measure it calls “effective rent” posted its sharpest drop since the firm began publishing such data in 1999.