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Though we are no longer in a de facto credit crisis, the shortage of available financing continues to be a serious problem for both retailers and retail real estate developers. The Mortgage Bankers Association reports that in the fourth quarter, there has been a noticeable pick up in the volume of commercial mortgage originations compared to a year ago. But overall, the credit situation remains daunting, according to a MarketWatch story. For more on credit availability and other news on retail and retail real estate, follow the links below.

• Our sister publication NREI reports that commercial mortgage originations showed an increase in the fourth quarter of last year.


• However, banks remain tightfisted on new loans, according to MarketWatch.com.


• Discount chain Meijer is debuting a smaller concept focusing on groceries in the Midwest, reports Indystar.com.


• The Street.com speculates that Movie Gallery’s new bankruptcy filing might benefit Blockbuster.


• The Wall Street Journal published a cautionary tale about a Memphis TIC investment gone horribly wrong. The Dirt Lawyer’s Blog follows up with some thoughts on unwise TIC investments that took place during the boom.


• The Wall Street Journal also has a story about Glenn Rufrano’s new career move.


• Atlanta Business News reports that shopping center locations can be a boon for medical practitioners.


• While other retailers are cutting back on both store-level and corporate personnel, Nordstrom plans to hire 250 people for its new store in Braintree, Mass., according to The Boston Herald.


• Bill Ackman claims Borders won’t face a bankruptcy threat, reports The New York Post.


• The CoStar Group predicts the bulk of new space demand in 2010 will come from retail franchise operators.

After a home run in December, retailers had another strong month in January. ICSC, Retail Forward, Retail Metrics and RetailSails have all crunched the numbers from the publicly-traded retailers that report same-stores sales and the figures show that the post-holiday shopping period went well for most firms.

Retail Forward, Retail Metrics and RetailSails concluded that same-store sales jumped 3.3 percent in the month while ICSC’s figures showed a 3.0 percent improvement. The numbers were slightly better than December’s result and made January the best month for retailers since July 2008 or April 2008, depending on whose numbers you look at.

ICSC’s tally shows that same-store sales rose 3.0 percent in January, the fourth time in five months that ICSC’s index has risen. The result was a slight increase from the 2.8 percent rise in December. ICSC expects retailers to post about a 2 percent gain in February. more…

It seems like every couple of days there’s a new burst of articles on the state of commercial real estate. At one extreme, you have stories breathlessly running off one or two metrics that show that commercial real estate is going to destroy the economy. A common one is the Deutsche Bank figure that up to 65 percent of the $1.4 trillion in commercial mortgages coming due by 2013 will have trouble getting refinanced.

That works out to just more than $900 billion. It sounds terrifying. But let’s put that into a little perspective. The pain is being spread out over four years. (And that assumes none of these loans will get extended, which has not been what we’ve seen so far.) Remember, as well, that the idea is that those loans will have “trouble” getting refinanced, more…

Cushman & Wakefield announced this morning that Glenn Rufrano has been named President and CEO of the company. Rufrano, who will also be appointed to the company’s board of directors, will join the firm March 22 following the completion of his tenure as CEO of Centro Properties Group.

Rufrano has had quite a run this past decade or so. He became CEO of New Plan Excel in 2000 when that firm was struggling a bit and through a series of shrewd dispositions and acquisitions and restructuring of its operations turned it into one of the largest and most successful shopping center REITs in the U.S. He spun that success into a deal where New Plan was absorbed by Australian limited property trust Centro Properties Group in early 2007. That acquisition–as well as the credit crunch–eventually got Centro into hot water because of the debt it took out in growing quickly.

In 2008, Rufrano was named Centro’s CEO and was successfully able to reach agreements with creditors that have enabled the firm to focus on operations. It’s in a much better place today. Rufrano was also tapped to serve on General Growth’s board of directors to help in its bankruptcy.

You also got the sense that Rufrano, after spending a lot of time in Australia the last couple of years, was looking to return home. He already has a replacement lined up at Centro. And he made some comments at a panel at the ICSC New York National Conference and Dealmaking that made it sound like he was ready to make a move. I thought he might become even more involved in General Growth. The move over to heading a large brokerage is an interesting twist. But so far, Rufrano has compiled a stellar track record.

Rufrano replaces Bruce Mosler, who became Cushman’s co-chairman of the board on January 1, 2010.

And the layoffs continue. Struggling book seller Borders became the latest in a string of big chain retailers to announce staff cuts. This should be of concern to retail real estate owners: a recent report by RBC Capital Markets posits that retail employment levels can be viewed as a leading indicator of retailer health and future store growth.

• The Associated Press reports that struggling book seller Borders has laid off 164 corporate employees in an effort to cut costs.


• A potential buyer has emerged for troubled luxury chain Barneys, according to The New York Post.


• Our sister publication Supermarket News reports that Price Chopper is suing bankrupt supermarket operator Penn Traffic Co. for cancelling a previous sale agreement. Penn Traffic is about to be sold to Tops Friendly Markets for $85 million.


• Another sister publication, NREI, ran a story about institutional investors’ continuing interest in commercial real estate acquisitions.

This might be hard to believe in the wake of Tishman Speyer and BlackRock’s handover of New York’s Stuyvesant Town/Peter Cooper Village to its lenders, but commercial real estate loans seemed to perform better in the past few months, according to the CoStar Group. Of course, more losses seem inevitable, especially as retailers announce job cuts and continue to close stores. For more on retail and retail real estate, follow the links below:

• The CoStar Group reports that regional banks observed a slowdown in deterioration of commercial real estate loans in the fourth quarter. Regional and community banks are expected to bear most of the losses from non-performing CRE loans.


• Meanwhile, The CRE Review posted an amusing analysis of what are likely to be common misconceptions about commercial loan defaults.


• The Movie Gallery will likely file for Chapter 11 next week, according to The Wall Street Journal. The move could result in up to 1,800 store closings.


• Bloomberg reports that Macy’s will lay off 1,500 store-level employees in March. Walmart and Hope Depot have already announced plans to lay off thousands of workers this year.

The country’s supermarket operators seem to be following a curious new trend, signing deals for store-within-a-store concepts with businesses hawking real estate and auto insurance. Stop & Shop, for instance, has just signed a deal for 17 “micro stores” with RE/MAX of New England. According to the Hartford Courant, the first of these stores will open at a Stop & Shop in North Haven, Conn. RE/MAX officials say they don’t necessarily expect Stop & Shop customers to immediately start using their services, but hope the presence of a RE/MAX store at their local supermarket will help them remember the brand when they do decide to switch digs.

Meanwhile, we hear that auto club AAA is opening up “express” stores at Lucky Supermarkets in Northern California, Nevada and Utah. Now, shoppers who visit a Lucky store will be able to buy auto insurance, plan road trips and even get their passport photos taken while on site. Has anyone heard of similar deals taking place?

And the saga of the Block 37 development in Chicago continues. This week, a Judge ordered developer Joseph Freed & Associates to hand over the keys to the project to the receiver. But wishing to hold on, Freed tries to secure potential investors in the development.

• The court has forced Joseph Freed & Associates to turn over Block 37 to a previously appointed receiver, according to Chicago Business. Meanwhile, The Chicago Tribune reports that Freed has started discussions with potential investors in a bid to gain back control of the project.


• General Growth Properties has tapped investment bank UBS to help it emerge from Chapter 11, according to the Examiner.com.


• Retailer Daily reports that Wal-Mart will lay off 11,200 Sam’s Club workers in 2010. The retailer denies the lay-offs have anything to do with the recession.


• The National Retail Federation forecasts a 2.5 percent increase in retail sales in 2010, according to Reuters.


• A Student of the Real Estate Game reports that applications for jobs in commercial real estate remain near 2007’s levels, according to statistics compiled by Cornell University.

The No. 2 burger chain in the world might be hoping to become No. 1 with the help of a little booze. Burger King will soon begin offering moderately-priced beer at select locations in the U.S., according to a story in The New York Daily News. Earlier this year, the chain already opened its first so-called Whopper Bar in Orlando, Fla.: a restaurant with a smaller footprint than a regular Burger King joint and limited menu options. That location does not yet serve beer. But a Whopper Bar that is about to launch in Miami Beach, Fla. will. Additional Whopper Bars, all featuring beer on the menu, might be in the works for New York, Las Vegas and Los Angeles.

The move likely arose from Burger King’s desire to expand its customer base in a down economy. It follows in the steps of its rival McDonalds’ earlier move into the coffee market, which has proved quite successful. Coffee, however, is not a very controversial product. Burger King’s new strategy, on the other hand, might very well bring in new clients who’ll be delighted to wash down their burgers with a little ale and if the company puts beer on the menu in only a few, strategically chosen locations this might be a smart move. But if this becomes a practice at most Burger King joints, it has the potential to drive away more customers than it brings in. I think it’s a safe bet that many parents won’t feel comfortable bringing their tots to a place where they might run into a drunk or two. And women might be put off by this as well. It wouldn’t be an issue in the daytime, but if I was craving cheap fast food in the nighttime, I’d probably opt to get it from a place that doesn’t serve alcohol as well.

What does everyone else think? Is this a good move for Burger King?