Zillow To Shut Down iBuying Program Zillow Offers

The move should take several quarters and will also result in Zillow reducing its workforce by about 25 percent.

Just weeks after it paused new iBuying, Zillow on Tuesday made the startling announcement that it plans to shut down its iBuying operations altogether.

The move should take several quarters and will also result in Zillow reducing its workforce by approximately 25 percent.

The company made the announcement in an earnings report, saying the company plans “to wind down Zillow Offers, the company’s iBuying service in which Zillow acts as the primary purchaser and seller of homes.”

Company founder Rich Barton added in the report that “we’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”

“While we built and learned a tremendous amount operating Zillow Offers, it served only a small portion of our customers,” Barton continued. “Our core business and brand are strong, and we remain committed to creating an integrated and digital real estate transaction that solves the pain points of buyers and sellers while serving a wider audience.”

The report goes on to note that winding down Zillow Offers will likely take several quarters and involve laying off 25 percent of Zillow’s workforce.In a tweet shortly after the report went live Tuesday, Barton described “a tough day at Zillow.”

Tuesday’s earnings report shows that iBuying has been extremely costly for Zillow. While the company pulled in $1.7 billion in revenue during the third quarter of 2021, it also lost $328 million. Virtually all of those losses were from iBuying; the report shows that the Homes segment of the company actually lost a total of $422 million during between July and September. That loss was offset by profits Zillow’s internet, media and technology segment. However, the quarter ultimately reversed a trend from recent periods in which Zillow reported profits, not losses.

Thank you www.Inman.com for this article. For more articles like this, Click Here.

For Additional Blog Content, Click Here! 

National Apartment Investor To Double Dallas HQ With New Lease

S2 Capital CEO Says New Tower Will Give Company ‘Top Notch’ Site To Recruit Younger Workers

A national apartment investment firm has decided to more than double the size of its corporate headquarters in Dallas with a new office lease at a yet-to-be-built tower near the city’s bustling Uptown neighborhood with plenty of planned amenities, which its CEO says should attract talented young executives to the growing firm.

S2 Capital, which has made a name for itself investing in value-add apartments but has recently acquired newer and higher-end real estate, has leased 25,000 square feet of office space, the entire 18th floor, at Harwood No. 14, a new office tower landlord and developer Harwood International is building at 2801 N. Harwood St. between Victory Park and Uptown. The firm is only the second tenant to lease space in the tower after global law firm Haynes & Boone signed a lease for 125,000 square feet in August.

“We felt Harwood did everything top notch and did it the right way,” S2 Capital CEO Scott Everett told CoStar News, adding the city’s Knox-Henderson neighborhood was also considered during the nine-month real estate search. “This fit into what we were looking for and felt like we found a place we could truly grow into in the next 10 to 20 years. This is a place a younger person would want to be, and we felt it would help us attract talent.”

The 32-year-old chief executive said the office tower’s site provides proximity to both Uptown and downtown Dallas without having employees travel through the city’s busiest business districts thanks to the nearby Dallas North Tollway. He said employees can also easily catch concerts and Dallas Mavericks games at American Airlines Center just blocks away, making it even more appealing to a younger crowd.

Bret Hefton, a managing director with JLL who represented S2 Capital in its search for a new headquarters, said amenities to attract and retain employees were imperative in that search.

The 27-story, 360,000-square-foot office tower’s design is heavily influenced by nature, according to architect Kengo Kuma, with a two-story lobby that blends indoor and outdoor features. The tower’s amenities include a rooftop and sky garden, open-air pocket gardens and about 17,000 square feet of retail space at street level.

The new Harwood office space is also more than double the size of S2 Capital’s current corporate office in Dallas’ Preston Center. That gives the firm, which employs roughly 40 workers, room to grow with enough space for more than 100 executives, Everett said. His team is already looking for some temporary space to lease to help it accommodate its growing workforce until the new tower is built and the office space is built out, he said.

The decision to lease space at Harwood No. 14 comes as S2 Capital, which has invested $6 billion since it was founded in 2012, is nearing the end of what has already been a busy trading year. By year-end, the firm plans to sell 21 properties in Florida, Texas and Arizona and buy eight properties, including five scheduled to close this week, in Austin, Dallas-Fort Worth and Phoenix.

S2 Capital expects to move into Harwood No. 14 in May 2023, months after construction is scheduled for completion in January 2023.

For the Record
JLL’s Bret Hefton represented S2 Capital. Kelly Whaley and Hannah Mesh of Harwood International represented the landlord and developer Harwood International. Tokyo-based Kengo Kuma & Associates is the design architect for the building, with Corgan and HDF also serving in various capacities.

Thank you www.Costar.com for this article. For more articles like this, Click Here.

For Additional Blog Content, Click Here! 

Housing Starts Faltered In September Amid Supply Constraints

Multifamily housing starts dipped 1.6% in September following a month in which the sector delivered surprising gains while single-family housing starts remained steady from the previous month.

Multifamily housing starts dipped 1.6 percent in September to a seasonally adjusted annual rate of 1,555,000 following a month in which the sector delivered surprising gains, according to the U.S. Census Bureau’s September 2021 New Residential Construction Report. Those starts were still 7.4 percent above the September 2020 rate of 1,448,000, however.

Meanwhile, single-family housing starts remained the same from the previous month at a rate of 1,080,000.

Labor and material shortages have continued to hamper builders’ progress, Kelly Mangold, principal at RCLCO Real Estate Consulting, told Inman in a statement.

What Is the One Thing That Instantly Updates Your Home Providing the Ultimate First Impression?

The Atlanta housing market is slowing down a bit and bidding wars are not as brutal as they were 6 months ago, however if your home is an A property and priced right, you will likely have multiple bids in a short amount of time. In a November 2020 blog article I outlined in detail suggestions how to get your home to A property status (if interested, read here…), but one thing I neglected to mention is this month’s focus.

What is one thing that instantly updates your home and provides the ultimate positive first impression? Replacing your garage door(s).

Every year Remodeling magazine releases a study known as the “Cost vs. Value Report” that highlights home improvement projects with the most return on investment (ROI). For three consecutive years, “replacing a home’s garage door” has been listed among the two best projects a homeowner can undertake to recoup investment upon selling the home.

According to their 2020 study, a homeowner will recoup 94.5% of the value of replacing a garage door.

In the past, garage doors were given very little attention by homebuilders and were pretty basic; blank panels of wood or aluminum slapped onto the front or side of a house. But somewhere along the way manufacturers realized that by slightly tweaking the designs, these doors could offer not just utility but greatly enhance the aesthetic appeal of the home’s exterior.

Now there is a wide selection of design choices to choose from and one of the most popular and enduring ones has been the carriage door. This provides a charming and elegant look to an otherwise somewhat bland part of the house. Prices range from the high hundreds for aluminum doors to several thousands for the heavier and more stately wooden doors. There are now even ‘smart’ garage doors but for the purpose of this article, I’m simply focusing on optics and first impressions.

But what if you don’t have the budget to spruce up your home to this degree before listing it? There’s another option that gives the impression of a carriage door that is much less expensive…magnetic hinges and handles you can attach to your existing door. These run under $20 on Amazon and instantly update your garage doors.

I’ll end on a personal note, we upgraded our garage doors shortly after moving into our current home and to this day I contend it was possibly the smartest $1,200 we could have spent. Not only do we get to appreciate them as homeowners, but when it’s time to sell we will definitely have a curb appeal advantage most of our competition won’t.

So there you have it, an instant face lift for your home which will set you apart from other listings in an easy and appreciable way.

By Holly A. Morris, Realtor

The Meridian Real Estate Group

For Additional Blog Content, Click Here! 

WHY FALL IS THE BEST TIME FOR PLANTING

Spring is often thought of as the best time for planting, but do you know that plating in fall offers some significant advantages for your garden? In fact, marketing ploys aside, fall is the best time for planting and starting a garden!

Below are some reasons why fall is the best time for planting perennials, trees, and shrubs in your garden:

The Weather is Perfect for Planting

The cooler weather in fall is easier for the plants and gardeners alike. The ground isn’t semi frozen and not too dry and the weather isn’t too warm or cold. The plants won’t get too stressed because they won’t be subjected to extremes in weather and hence can recover faster after planting.

You Won’t Have to Plant Right After Buying Plants

There is no need to plant right away because you won’t have to worry about plants drying up or the ground being too hot. As for trees, planting them when they’ve lost their leaves is actually better because they won’t have to exert energy growing leaves and can focus on growing roots. This is the biggest fall advantage, helping the plant grow better roots so that they’ll have energy to display gorgeous foliage and blooms come spring time. The fall to spring transition is quicker than waiting for a full year before getting to see the results of your handiwork.

Lower Maintenance Effort

You won’t have to water as much in fall, so that’s less maintenance effort from your part. You will also not have to baby sit new plants and fret about whether they will survive or not because of the overall milder weather.

A good tip for planting in fall is to water the plants in their pots a few hours before you transport them to their new homes. This lets them soak up water and be better prepared for planting. Water the hole they’ll be placed in too before planting.

It is Easier to See Where to Plant Best

Fall allows you to see sparse areas of your garden that need more plants. It is the best time to plan out next year’s garden and start planting it. You’ll know exactly how the other plants look like and how much space they take when they got foliage and blooms, allowing you to add pops of color where you know you need it.

Bargains in Gardening Supplies

Gardening supplies are typically at their peak prices in spring but are cheaper in fall when some shops even close their business for the winter. Shop for non-perishable supplies, seeds, and maybe some bulbs in fall. You can probably get gardening tools at discounted prices and perhaps some fertilizers, netting, pebbles, and similar things. Watch out for sale in pots, too!

Credit To: Brad Miller

For Additional Blog Content, Click Here! 

6 Things People Say About Buying a Home Today That Actually Aren’t True

You’ve probably heard about some of the challenges of buying a home these days. Stories are splashed across news sites and whispered among friends and neighbors, about homebuyers mired in insane bidding wars, going way over asking price, and still not getting the house.

Daunted and dejected, homebuyers have also heard heaping earfuls on what to do, from “wait it out” to “waive your home inspection” and other extreme measures. Yet amid this frenzy of well-meaning chatter, the thing to remember is that real estate markets can change quickly, and much of what you’ve heard may not even be true—at least, not anymore.

Over the past year, median home prices have soared to nearly $360,000—18% higher than last July, according to the National Association of Realtors®. As such, bidding over the asking price is something most buyers still need to consider, says Scott Bergmann with Realty ONE Group Sterling in Omaha, NE.

Yet buyers aren’t offering as much over asking today as they were a few months ago.

Over the summer, in his market in Southeastern Michigan, Gelios says buyers were offering more than $40,000 over the list price and waiving appraisals.

“Fast forward to September 2021, and we are still seeing offers over asking price, but not that many compared to several months ago,” he says.

Rodriguez-Tellaheche says he’s seen buyers offer up to 40% over the asking price (and sometimes still not land the home), but now it’s more like 10% above the list price.

4. ‘I’ll end up in a bidding war’
Bidding wars for real estate have been common in 2021, as there have been more buyers than homes on the market. Some buyers were left disappointed when their bids didn’t make the cut.

While the market is still competitive, Arienti says homes in his area aren’t receiving as many offers these days—maybe one or two instead of dozens from a few months ago. That’s leading sellers to adjust their expectations.

Still, some buyers may still need to bid on several homes before getting an offer accepted, so Arienti urges buyers to not get their hopes up too high about a home until they have a sales contract in hand.

5. ‘I’ll need extra money to cover an appraisal gap’
Mortgage companies typically require a home appraisal before approving a loan. But when a home appraises for less than what a buyer offers to pay, the buyer is often stuck paying the difference, known as an appraisal gap.

Rodriguez-Tellaheche says that over the past few months, it’s become common for buyers to pay for the appraisal gap, as many were submitting offers a lot higher than the home’s list price. Many buyers making cash offers waived appraisals altogether.

Yet waiving appraisals and agreeing to cover appraisal gaps aren’t happening quite as much anymore.

“A lot of buyers just got fed up in the spring, and they hopped out of the market,” Arienti says. “That changed the stance of a lot of sellers.”

6. ‘I need a perfect credit score to get a loan’
Today more than ever, a high credit score and a solid financial history are necessary for getting pre-approved for a mortgage. But this doesn’t mean your credit score has to be perfect.

Bergmann says he often encounters homebuyers who think they need a credit score in the 700s.

“Although a 700 or above does help your interest rate, it is not a requirement for most lenders,” he says. “If you have a 640 or above, you could potentially be pre-approved; you may just have a higher interest rate.”

If your credit score is a little lower and you’re offered a higher interest rate, you can purchase mortgage points to lower that rate. In his area, Bergmann says a point costs 1% of the purchase price and lowers the interest rate by 0.25%.

Cushman Wakefield Recently Put Out It’s Global Key Findings Report On Predicting The Return To The Office

Cushman Wakefield recently put out it’s Global Key Findings Report on Predicting the Return to the Office. Here’s what they had to say, and do you agree?

SMART DEVICES TO PROTECT YOUR HOME

Some smart gadgets are designed to save you money, save you time, or save you trouble. But alongside these convenience-related uses, there are also plenty of smart devices with a more serious goal: To keep your property and your family safe. If you’re ready to smarten up on security, here are four technologies to consider bringing into your home.

Locks. A smart lock is the first thing most people think of when they think of smart home security, and is one of the most practical security devices on the market. You eliminate the risk of locking yourself out of the house, while also making it easy to remotely lock the door if you forget to do it when you leave the house. You can also give access to others, such as a house sitter or childcare provider, and remove that access easily when it’s no longer needed. Similarly, you can get smart garage doors with the same features.

Timed lights. For many years, people have been deterring burglars by using timers to simulate an occupied house while they’re away. Smart technology has taken this concept to the next level: Some smart plugs allow you to not only schedule your lights, but even include a vacation mode where lights will be turned on and off at random intervals for an especially convincing performance.

Security cameras. These days, smart security cameras like Nest or smart doorbells like Ring are accessible to your average homeowner. Not only does a visible camera deter break-ins, but these features can allow you to easily see who’s at your door before opening it, or capture video if something criminal occurs.

Detectors. Not every risk to your home is a potential break-in. Plumbing problems can be incredibly expensive for homeowners, and a smart leak detector can help you catch them before they get out of hand. Some more intensive systems can even enable you to remotely shut off your water in case of extreme leaks. Smoke detectors and CO2 detectors have also gotten smarter, offering more informative warnings when they detect a problem than your typical battery-operated detector.

This information was provided by one of our preferred vendors, Supreme Lending. Thank you, Cale Iorg, Senior Loan Officer NMLS# 1121662, for this information.

For Additional Blog Content, Click Here! 

Simple Tools to Pick Up Fall Leaves

Like clockwork, each fall as the first batch of leaves fall, towns and neighborhoods roar awake with the sound of gas-powered leaf blowers.

It’s the annual battle of weekend warriors versus the leaves—and you know what’s at stake: not only is the debris an eyesore and a nuisance, especially if your leaves blow onto your neighbor’s clean lawn but if you stall, a mantle of snow might cover them and smother the grass. That means more work for you come spring.

What Happens If You Don’t Pick Up Leaves?

If you don’t pick up fallen leaves, they could end up harming the grass and killing the yard. So it’s important to clean up the yard regularly, especially in the fall.

The Best Tools to Collect Leaves

Gas leaf blowers, and their far quieter battery-powered cousins, can be handy to direct a pile of leaves. But as fast as they can be, nearly as quickly you can make more work for yourself by launching leaves the wrong way. And there are a few uses for leaves in the garden, for things like mulch.

On a small lawn, you could chop them up into fine bits with a lawnmower and let them decompose in the lawn. But for homeowners who like to bag leaves for disposal, simply piling leaves doesn’t help get them in bags.

When it comes to getting leaves into bags, we’ve found the best way, after you’ve piled them on the lawn or the street with a leaf blower or a trusty rake, is to use a system that makes them easy to get onto a tarp and then into your bag.

The Best Leaf Tarp

EZ Lawn and Garden 6×4-foot Leaf Hauler Sport

This tarp has some smart features that make it easier to use. Handles along the outer edge make it easy to reposition, but the ones along the narrow edges are perfect for picking up the loaded tarp, folding it over like a taco, and then tipping its contents into a bag or pail. Stiff corners and tent-pole-like rods give it enough structure so filling it is easier.

Specifications

• The 6×4-foot size holds 24 square feet of leaves, or about four wheelbarrows full
• Folds up for easy storage
• Has a pair of stakes built in to keep the tarp steady on a lawn
• 90-day warranty

Pros

• Makes loading leaf bags easier
• Better than a regular tarp when transporting a pile of leaves by dragging it
• Built-in structure prevents leaves from blowing right out of the tarp
• Easy to wash off with a hose

Cons

• The 6×4-foot size might be a bit too small on larger properties with several mature deciduous trees

The Best Leaf Chute

KwicKan 33-55 Gallon Portable Instant Container

This simple piece of bendable plastic makes it much easier to load leaves when working solo. Stick it into a paper or plastic bag, up to 55 gallons, and it will flex open to a “U” shape and hold the bag open plenty wide for you to put in leaves by hand, by shovel, or using a tarp. Works for just about anything you put in a bag, like lawn clippings or trash.

Specifications

• Made from 0.06-gauge ABS plastic
• Handles on all sides makes it easy to grab
• Smooth corners won’t rip bags.
• 47×28-inch size is easy to store flat against a wall
• No warranty

Pros

• Makes cleaning leaves a one-person job or increases the efficiency of everyone’s work if you use two
• Flexible plastic won’t rip bags and is easy to use
• Can be used for opening bags throughout the year

Cons

• If you do chip an edge, it can snag bags and cause ripping

The Best Leaf Shovel

Razor-Back 36-inch D-Handle Aluminum Scoop

A shovel for leaves might sound odd, but if you like to push leaves out into the street before collecting them or have a bunch of wet leaves to pick up, a shovel you can push along the road makes filling bags easier.

The key is to have the bag wide open and a shovel with a head narrow enough to fit inside. This aluminum scoop won’t rust, and while it can also move rocks, soil, granulated lawn amendments, and compost, it makes short work of a pile of leaves.

Specifications

• The head is #14 size made from rust-proof aluminum
• The D-shaped handle is generously sized and comfortable
• The ribbed 15 1/4-inch-wide pan increases durability without adding weight
• The 58 1/2-inch-long shovel, made with a hardwood shaft and handle, is a comfortable size to use
• Lifetime limited warranty

Pros

• Large pan but the shovel is easy and comfortable to use
• Durable design for use all year long
• Makes it easier to collect leaves if you tend to blow or rake them into the street

Cons

• The head might make it harder to fill narrower paper leaf bag openings

Thank you www.thisoldhouse.com for this article. For the whole article, Click Here.

For Additional Blog Content, Click Here! 

4 Creative Ways To Save For A Down Payment

Your down payment is a huge part of determining your overall home budget. The more you’ve saved for a down payment, the easier your house hunt will be. Here are a few creative ways to save for a down payment:

• Reduce current expenses — even just temporarily. If you must drop Starbucks for a few months, it’ll taste even better when you get it back. Try checking on all those subscriptions, too: Netflix, Spotify, Blue Apron, Stitch Fix, Audible… they stack up.
• Sell any possessions that you don’t use much anymore. Try Craigslist or Facebook marketplace or look for local second-hand stores that will pay. Bonus: This doubles as a money saving tip and a house cleaning tip.
  Start a side hustle. Be it selling scarves at a craft fair or offering graphic design services online, monetizing your skills can bring in some extra cash. Not sure what skills to monetize? Thanks to the growing “gig economy,” business like Uber Eats and TaskRabbit are easy to get into.
• Let your money earn more money. Try a high-yield bank account, certificate or deposit, or another investment. Apps like Acorns make it easy for beginners to invest even small amounts to keep that money growing.

This information was provided by one of our preferred vendors, Supreme Lending. Thank you, Cale Iorg, Senior Loan Officer NMLS# 1121662, for this information.

For Additional Blog Content, Click Here! 

Amazon To Open Over 250 New Distributions Facilities Of Various Sizes Across The Country In 2021

Online retailer Amazon has kicked off yet another round of large-scale recruitment, with the aim of increasing its fulfillment and transportation headcount by 125,000.

The new hiring initiative unveiled on Tuesday is national in scope, though the Seattle-based company is putting special emphasis on 18 states where it’s investing billions in new logistics hubs.

The push is fueled by a relentless, two-year battle to expand its logistics network across the United States that is still going strong. Amazon said Tuesday that during 2021 it has opened over 250 new fulfillment centers, sorting centers, regional air hubs and delivery stations across the country. In September alone, it plans to open “over 100” more locations, provided that the company can muster up the staff to do it.

The task is a tall order. Amazon is up against “extensive labor shortages” in every region of the United States, according to a Sept. 8 report from the Federal Reserve, and has also been accused of difficult working environments in some areas, which could make it harder to entice new employees. In response, the company has offered higher starting wages, benefits that begin on the first day of work, and sign-on bonuses of up to $3,000.

About half the open jobs appear to be in the West. Amazon hopes to hire 7,500 workers in Arizona, about 4,500 in Washington and a whopping 26,000 in California. News reports Tuesday indicate that the company also plans to hire about 2,700 in Colorado, though the official statement cited was not available to CoStar News.

To the South, Amazon is focusing on Florida, Georgia, Kentucky, North Carolina, Tennessee and Texas.

Meanwhile, in the Midwest, Amazon’s attentions will center on four states that form a long, heavily industrialized corridor at the base of the Great Lakes: Illinois, Indiana, Michigan and Ohio.

Finally, on the East Coast, Amazon is doubling down on Maryland, New Jersey, New York and Pennsylvania.

Earlier this month, Amazon announced that it planned to hire another 40,000 white-collar and tech workers. If both hiring initiatives are successful, its total workforce will grow by about 17.4%, from 950,000 at its last earnings report in late July to about 1.1 million.

Such rapid expansion is not unprecedented. After the arrival of the pandemic in early 2020, Amazon’s already intense campaign went into high gear as the company sought to make the most of a newly captive audience: millions of quarantined consumers who turned to the internet for basic goods and entertainment. By the end of 2020, the company increased its industrial footprint by over 100 million square feet and nearly doubled its workforce, from 500,000 to 950,000.

Thank you Costar.com for this article. For the whole article, Click Here.

For Additional Blog Content, Click Here! 

Could Self Storage and Open Air Residential Be The Saving Grace For Failing Malls?

Landlord Urban Edge Also Considers Industrial, Residential Additions to Retail Sites

Urban Edge Properties revealed more details about diversifying its malls and shopping centers, adding uses such as self-storage and industrial, advancing a national discussion in retail real estate as landlords try to evolve to compete with online shopping.

The Manhattan-based real estate investment trust, which owns 76 properties with 15.1 million square feet of retail space mainly in the greater New York region, drilled down on its redevelopment of properties in North Jersey and in Yonkers, New York, in a presentation for investors.

In one example, Urban Edge said it plans to “de-mall” the interior space at its Hudson Mall in Jersey City, New Jersey. As part of that project, the REIT said it will be adding “a mix of retailers and industrial or self-storage uses” at that 618,000-square-foot property.

Urban Edge is one of many mall landlords and shopping center owners diversifying the types of tenants at its properties. Pennsylvania Real Estate Investment Trust is adding residential units to many of its malls across the country. And Paris-based Unibail-Rodamco-Westfield is slated to bring office and multifamily housing to the Westfield Garden State Plaza in Paramus, New Jersey.

Brick-and-mortar retail was struggling even before the pandemic, because of e-commerce’s rise, and that trend was exacerbated by the coronavirus outbreak. So landlords are seeking new ways to fill vacancies left by the flood of retailers that didn’t survive COVID-19, in some cases looking for nontraditional retail tenants to drive foot traffic or even convert or totally raze malls for new uses, such as logistics.

Pipeline Advances

Urban Edge has previously disclosed some of its redevelopment plans for the Hudson Mall as well as a few other properties, such as Bergen Town Center in Paramus. But in a presentation this month, it updated investors on those projects and others, providing more information about the planned changes.

Urban Edge reported that its “largest pipeline projects are advancing,” adding that its “portfolio offers numerous densification opportunities, which benefits from the flexible format of shopping centers and the fact that 75% of our land consists of parking lots.”

The opportunities to densify shopping centers and malls include adding not only storage, residential and industrial uses, but medical, according to Urban Edge.

Self-storage is a less common new use for retail space, compared to multifamily and healthcare, and Urban Edge is looking to add it beyond just the Hudson Mall. The landlord is spending $4.1 million to repurpose 82,000 square feet of unused basement space into an Extra Space self-storage facility at The Plaza at Woodbridge in New Jersey. And it is looking to add a 100,000-square-foot Cube Smart self-storage facility on excess land at Tonnelle Commons in North Bergen, New Jersey, a $10.5 million project.

Urban Edge didn’t return a phone call seeking comment Monday, so its precise plans for “de-malling” the Hudson Mall and adding retailers, industrial and self-storage were unclear.

But because of the difficulties some shopping center and mall landlords have faced, in some cases they have totally moved them away from retail use, said Chuck Lanyard, president of The Goldstein Group, a Paramus-based brokerage that specializes in retail.

Enter Self-Storage

It’s unusual to see mall space repurposed for self-storage, according to Lanyard, but it makes sense. Self-storage is a growing commercial real estate use, and malls and shopping centers have the kind of air conditioning and climate control already in place that self-storage facilities require, he said. And self-storage especially makes sense for vacant land at a shopping center or underutilized space, such as a basement, the route that Urban Edge is taking in Woodbridge and at Tonnelle Commons, according to Lanyard.

“Shopping centers that very often would land-bank extra land thinking they may grow when they built 20 or 30 years ago now have an opportunity to put up self-storage facilities that may pay very good money for the land leases,” Lanyard said. “And many self-storage companies … prefer to buy the property rather than lease.”

In Bergen Town Center, Urban Edge said it plans to “create a more dynamic open-air retail experience: pursue options for residential, office and other uses on property, improve [the] outdoor experience with expanded walkways, new seating and dining options and improve [the] tenant mix.”

At Yonkers Gateway Center, the REIT said it will craft a master plan to retenant the front parcel and add residential to the back of the property.

Urban Edge reported it has $146 million of active redevelopment projects and a $1 billion redevelopment pipeline.

Last month, when Urban Edge hosted what was apparently its first quarterly earnings call with Wall Street analysts, officials were bullish on shopping centers that had open-air formats. In its recent investor presentation, the REIT said those formats are “well positioned for consumers to access essential goods and services” and that such locations facilitate last-mile delivery and provide easy buy-online-pickup-in-store and curbside pickup capabilities.

For Additional Blog Content, Click Here!