Retail isn’t overbuilt, it’s under-demolished, says Don Wood, CEO of Federal Realty Investment Trust.
There’s plenty of room for growth in areas with high concentration of high-income households. And in areas where there’s not?
Well, they’re not likely to see redevelopment and it’s going to be a long time before they see the wrecking ball, says Wood.
They will likely just get “crummier” said Wood, “over the next 20 years.”
Retail developers have been able to defy the gravity our our nation’s economic crisis by concentrating in areas that are still doing quite well, said Wood. As other economies get worse, investment dollars from around the world pour into the U.S. seeking safety.
Where they get a return are the places in the U.S. that are still humming along. Not in areas getting crushed under the slump.
Click here to read my column on Marketwatch.