REAL ESTATE’S RETAIL MARKET
Who EVER would have thought that in the space of 4 short months behemoth, legendary stores with long and successful histories would crumble and fall before the deadly COVID-19 VIRUS?
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While it had declared Bankruptcy on May 7, just this week Neiman Marcus announced that it was closing four of its large ultra-luxury (48,000 soft plus) stores, including the 20-year-old, infamous one on Worth Avenue in Palm Beach! On March 17, Worth Avenue’s Neiman’s and 42 other of their stores as well as their Bergdorf Goodman stores and the Neiman “Last Call” stores all closed. While some have reopened, it remains to be seen if the unprecedented COVID-19 pandemic disruptions will allow this remarkable company to bounce back.
Other store closures and bankruptcy filings have included J C. Penny Co., J.Crew Group, Inc. and Ascena Retail Group, owner of Ann Taylor’s which is closing 1,600 stores.
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Another victim, is the legendary (since 1818) Brooks Brothers which had moving vans clearing out its space before the Town of Palm Beach issued all stores closed on March 17! Yes, that venerable, American haberdashery, with it’s indisputable pedigree, is one of the oldest clothing stores (202 years) that is looking like it may be giving up the fight. Remarkably, Brooks Brothers made the black wool coat that President Abraham Lincoln wore to his second inauguration and it dressed our parents, grandparents, and great grand-parents! It survived the Great Depression, the crash of 2008 and the deadly advent of “casual Fridays”. It appears there is a smidgen of hope that they will retain approximately 48 stores, but, this American institution has also been brought to its well-clad woolen knees by this deadly virus.
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Locally, in Palm Beach County, there have been many closures of long-time boutiques, favored local stores and favorite places to shop. Recently, I toured Worth Avenue, and saw over 19 closed shops along the Avenue, not to mention what has happened to all the little gems of shops in the Palm Beach Vias of Worth Avenue.
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CLASSIC COLLECTIONS BOUTIQUE
PALM BEACH
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We will have to see if and when “Season” starts again and who and how many of these wonderful beloved retailers are able to open again. It is these “Mom and Pop” shops that are the main-stay fabric of any town, giving it a unique, familiar and friendly atmosphere for the residents. Let’s hope that COVID-19 is somewhat conquered by then so we can enjoy and support our local retail shops and friends, including Classic Collections, my wonderful luxury consignment shop in Palm Beach.
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MORTGAGE NEWS
Mortgage rates just hit another low record of 2.87% on a 30 year fixed mortgage according to
Mortgage News Daily
. While it’s hard to be happy with the pandemic we are living through, this is a piece of good news for homeowners and home buyers.
According the
Mortgage News Daily
, there are pools of loans being sold with average rates of 2.652%, but this can only last for so long.
It all depends on the fact that the Federal Reserve is buying more mortgage-backed bonds, and what investors will pay for these mortgage-backed bonds…they will need some kind of yield, or they just will not buy the bonds. So be cautioned and start shopping NOW for a rate that suits you!
Regarding refinancing, today's rates are: 10- year fixed = 2.82% APR; 15 year fixed = 2.93% APR; 30 year fixed = 3.75%. Again, now is the time to get proactive on that refinancing project!
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THE LOCAL COMMERCIAL REAL ESTATE MARKET
This is a segment of the real estate world that is in great flux right now. In big cities, there is a concern that people will not commute long trips if they can work from home. There is concern that giant sky-scrapers will be half empty as big firms maintain only a “showroom type of office in a famous building” and lease space in outlying non-commercial communities. Office parks that are in surrounding suburbs are cheaper and easier for the workers to access. No traffic, no long commutes, no danger of 50 story elevator rides with strangers, etc.
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Jeffrey Green's Office Projects
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Locally, there is concern that some buildings that are in mid-construction that were to be office buildings and others that were on the calendar to begin construction have been throw by the current commercial reaction to the COVID-19 Virus.
Jeffrey Green, builder of two high-rises on Quadrille, has told the City of West Palm Beach that if they do not allow him to revise his plans for the office high-rises and let him convert the zoning of the project to rental or owned condos, he will simply stop construction when he gets to the roof and leave these behemoth skeletons hovering over the downtown business district.
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Related Company's Planned
Office Tower
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The Related Companies, which won a court case to be able to build (Pic of drawing) behind the First Church of Christ Scientist between Okeechobee and Lakeside Boulevards and will sit in front of the Esperante Building, maybe giving some thought to breaking ground now based on the flight of many local companies to areas west, north and south of West Palm Beach. Aside from a fight guaranteed to come from the Town of Palm Beach about the traffic and bridge problems it will cause, rents are less expensive, employees don’t need to drive through town or rush hour and it’s easier and convenient to work in the more suburban areas.
Companies that are looking for space and want to be moved and established in their new work environment are on the fence right now about signing leases. They are waiting to ride out August to see what happens with the COVID-19 situation and simply will not commit until they see things especially in Palm Beach County begin to become safer.
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OUR COMMERCIAL LISTINGS
Speaking of commercial properties, Ambassador Realty Corp. has just co-listed a magnificent 741 (+/-) Acre vacant property tract surrounding Brannen Lake in Statesboro, Georgia. This pristine wooded land is divided into three development parcels but can be purchased as a whole for $4,820,000.
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741 Acres (+/-) Brannen Lake Project, Statesboro, Georgia
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With a local airport and Augusta and Savannah only 45 minutes away, this beautiful area of Statesboro in Bullock County, is home to Georgia Southern University, East Georgia State College an Ogeechee Technical College.
Statesboro is the regional hub for retail, cultural experiences, healthcare, education and professional services and draws customers from 6 surrounding counties of over 200,000 customers.
Please call us for more information on this property and our other commercial listings!
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LOCAL RESIDENTIAL SALES
While every day there are headlines that $30, $40 and $50 million dollar homes are being purchased in Palm Beach, that statistic does not necessarily carry over the Intracoastal. Sales in some areas are up, especially South of Southern Blvd., and in the north areas of Palm Beach Gardens and Jupiter.
Many people are renting condos to try out condo living, versus house living, and there will be sales from those “tests” as the leases come to an end.
While Downtown West Palm Beach has many new and beautiful buildings that have available units for rent and purchase, the inevitable closing of so many restaurants, store and service businesses are curtailing the market until there is some hope of normalcy coming back soon---hopefully before “Season” starts again. PLEASE TAKE A LOOK AT OUR CURRENT LISTINGS ON OUR WEBSITE:
http://www.AmbassadorRealtyCorp.com
If you have any particular property, community or area that you exceptionally interested in, please go to:
https://ambassadorrealtycorp.com/search-2/
and customize your search.
The tremendous lack of available flights to Palm Beach International Airport has harmed the ability to bring buyers to town and, while virtual showing are taking place, it’s not easy to close those transactions. So, realtors are trying to make virtual tours especially attractive, sending school information and cultural events to buyers who want to re-locate from up north, but there again, it’s hard to brag about the Kravis Center and Norton Museum and the special attractions in Palm Beach when everything is closed.
And so it goes…we do our best and hope that this pandemic will begin to disburse and let life slowly and safely get somewhat back to normal.
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ALL OF US AT AMBASSADOR REALTY CORP. WISH YOU A SAFE SUMMER, BE WELL, WEAR MASKS AND WE ARE HERE FOR YOU NO MATTER WHAT!!
Wishing you only THE BEST!
Sally Kimball,
Broker/Owner
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ONE CITY PLAZA
801 S. Olive Ave., Ste. 119
West Palm Beach
FL 33401
Office: 561.557.7662
Email: info@ambassadorrealtycorp.com
Web: www.AmbassadorRealtyCorp.com
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DISCLAIMER: The materials on this newsletter have been prepared by Ambassador Realty Corp only for general informational purposes. We assume no responsibility for the accuracy or timeliness for any information provided herein or by any linked site or publication.
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