CBRE helping retail clients tackle a shifting market.

CB Richard Ellis Inc. is leading its clients--including the nation's leading retailers and retail brands--through an uncertain market with additional focus on its outsourcing, retail disposition, leasing, valuation and consulting services.

"This is an unprecedented economic environment, so many retail clients are faced with challenges they have never seen before," said Anthony Buono, executive managing director of National Retail Services.

"We have adjusted with this shift in the market by investing our time, energy and resources accordingly, being the steady, strategic voice of reason during a time of uncertainty."

CBRE has three core priorities for its retail services division to better serve a marketplace that demands faster, more sophisticated advisors: assemble a team comprised of the best retail professionals; increase its focus on retailer representation; and expand its breadth of services across the platform.

To that end, CBRE has completed its recruitment of additional leading retail professionals; expanded its service lines; and grown its market share.

In a recent CBRE retail State of the Union teleconference, hosted by Buono and bringing together an estimated 500 CBRE retail professionals throughout the Americas, speakers noted that while the retail sector has slowed amidst the overall economic environment, opportunities exist in certain markets and niche segments, as well as for value-focused and cash-strong owners and investors.

"Not all retail segments are being impacted equally," said State of the Union guest speaker Will Ander, senior partner, McMillan Doolittle.

Buono noted that among the national markets, New York City, Beverly Hills, Seattle and Hawaii continue to show positive activity, while hyper growth markets like Sacramento, Las Vegas, Reno, Phoenix and Florida are slowing down.

Added Ander, "Strategies that focus on saving money will be the key success stories for the rest of 2008 and all of 2009."

CBRE currently advises, on a regional basis, Wal-Mart, Costco, H&M and many other retail brands that bring value to consumers, in part, with money saving products and services.

resenters at the State of the Union gathering also noted that, down from record highs, retail investment sales will likely see a 20% to 30% pricing decrease peak-to-trough, with pricing expected to remain compressed in the short term while cap rates will likely rise.

However, cash-rich investors and landlords will have many options, as down markets create new investment and growth opportunities.

CBRE is advising various financial institutions, creditors, debtors and trustees in the recapitalization of distressed loans and properties. In fact, many investors today are capitalizing on these opportunities and purchasing debt through CBRE's Loan Sales Advisory Group.

In regard to the overall retail market, value-focused retailer operators, such as Wal-Mart and other discount stores, are in strength positions, as consumers now have an increased need for lower-cost items.

Furthermore, there will likely be an increase in the number of international retailers entering the U.S. market. In particular, international fashion retailers are in a strong position because they turn product around quickly and sell it at reduced prices. Also, as several big box retailers struggle, niche and lifestyle players are likely to enter the market.

"Clients are looking for expertise, continuity, and above all else, a trustworthy advisor," Buono said.

"CBRE is fully invested as we guide clients through this market shift, and to better position them to excel during turbulence."