{"id":19827,"date":"2016-03-01T14:04:30","date_gmt":"2016-03-01T21:04:30","guid":{"rendered":"https:\/\/www.itmtrading.com\/blog\/?p=19827"},"modified":"2016-04-11T16:43:22","modified_gmt":"2016-04-11T23:43:22","slug":"commercial-real-estate-continues-implode-gold-shines","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/commercial-real-estate-continues-implode-gold-shines\/","title":{"rendered":"Commercial Real Estate Continues To Implode As Gold Shines"},"content":{"rendered":"

Do you remember the financial meltdown that began in 2007? Do you remember Bear Stearns, Lehman Brothers, bailouts, stock market crashes and stocks like Ford and Citibank under $5 a share? Well, that financial meltdown has not come to a halt. Times were tough back then, and times continue to be tough for big retailers. As 2016 has begun to take shape, we see that commercial real estate continues to implode as gold shines.<\/p>\n

Commercial real estate continues to implode for a few reasons. Americans just don\u00e2\u20ac\u2122t have the extra income they once did. Sayonara middle class. This article posits that Americans have become nearly poverty stricken. 51% Of All American Workers Make Less Than 30,000 Dollars A Year. <\/a>If you make less than $30K a year, expensive new items and trips to the mall are probably not in your budget. Perhaps this is a reason commercial real estate continues to implode.<\/p>\n

Commercial Real Estate Continues To Implode: These Stores Are Closing.<\/span><\/h2>\n

When an old Taco Bell closes, there is a small family owned business like a Filiberto\u00e2\u20ac\u2122s or a Roliberto\u00e2\u20ac\u2122s, or a Poliberto\u00e2\u20ac\u2122s or an Alberto’s waiting to open in that old building and begin selling tacos or burritos or something, but when a Walmart Super Store closes, well, you can’t fill that commercial real estate behemoth with beans and rice and turn a profit. More and more of these big retailers that used to provide jobs and commerce in small-town and middle-town America are now leaving unemployment and big, empty, devalued buildings and blight in their wake.<\/p>\n

\"Commercial<\/a>

You Can Re-Purpose An Old Taco Bell Pretty Easily. An Entire Mall Is Not So Easy To Re-Purpose.<\/strong><\/p><\/div>\n

Sears. Poor Sears. I have written about Sears recently, and their economic spiral continues. Sears is reported to have losses around $580 million in the 4th quarter of 2015. A fiscal quarter is 90 days long, so Sears lost $580 million in about three months. Sears is also expected to close 50 more locations this year.Commercial real estate continues to implode. Sears has been a \u00e2\u20ac\u0153net closer\u00e2\u20ac\u009d of stores for quite some time now. With those Sears stores go Sears jobs.<\/p>\n

Sports Authority may soon be becoming an authority on bankruptcy. The Sports Authority has big retail spaces, about 450 of them. Will 100 of those stores close? Some reports say 200 closed Sports Authorities is more likely, at least for now. Will broke and fat Americans support the remaining 250 Sports Authority stores? If not, well, commercial real estate continues to implode.<\/p>\n

\"Commercial<\/a>

This Poor Fella May Be Out Of A Job. Thousands Of Sports Authority Employees Will Become Former Sports Authority Employees. Hundreds Of Large Commercial Real Estate Locations Will Become Former Sports Authority Locations.<\/strong><\/p><\/div>\n

If poor and lazy Americans cannot keep the monstrous Sports Authority stores open, then corporate America and business America do not seem to be doing any better at keeping Office Depot stores open. Office Depot plans to have a total of 400 of their stores closed by the end of this year. Imagine the sheer enormity of 400 Office Depot stores. Expect higher local unemployment and large empty buildings. Commercial real estate continues to implode.<\/p>\n

Wal-Mart is closing 154 stores in the United States alone, and another 115 stores around the world, for a total of 269 stores to be closed in 2016. 154\u00c2\u00a0 Wal-Mart stores and all of the jobs that go with them will cease to exist in America. The jobs that are created by producing and delivering merchandise to 154 Wal-Mart stores in America will be gone. Sooner or later the high paid executives that in essence ran those 269 stores world-wide will be out on their former Wal-Mart keisters, too. Good Jobs vanish while commercial real estate continues to implode. Clean up on aisle Wal-Mart.<\/p>\n

\"Commercial<\/a>

This Gap Store Does Business And It Will Not Be Closed. This Gap Store Is In China.<\/strong><\/p><\/div>\n

Did you like shopping at the Gap? All you may soon have left are some faded jeans and memories. 175 Gap stores will be closing in North America alone. They are probably closing others around the world too. We will see how it goes. Gap stores are not big stores like Wal-Marts or Sears stores are, but they represent the death of commercial real estate monoliths much bigger than free standing stores like Wal-Mart. The death of stores like Gap may spell the end of many indoor shopping malls.<\/p>\n