Glimcher

[Spartan]

Cost of a silly, frivolous lawsuit for a project that will be in the tens of millions?

Doesn't even make sense and I've heard they are still signing leases and have made good progress.

Why would a first-class national REIT be so thirsty to invest in OKC right now? I wouldn't be surprised if this project is a 50/50 proposition right now for Glimcher.

[PhiAlpha]

I have heard a rumor that they are re-evaluating whether or not to proceed with this development because of the cost of the lawsuit and even if they do win, the reputation they will have in the neighborhood due to the NIMBY opposition. I want to repeat this is just a RUMOR that may not have any substance behind it. Can anybody confirm or deny this?

Are you just searching for reasons to be worried about developments?

[PhiAlpha]

Why would a first-class national REIT be so thirsty to invest in OKC right now? I wouldn't be surprised if this project is a 50/50 proposition right now for Glimcher.

Why not? OKC is lacking in retail options, they've put together a plan, have leases secured and have been very successful in filling all of the empty retail spaces they took over.

[HOT ROD]

they also could take advantage of 'cheaper' construction and possibly acquisition costs now that the OKLAHOMA economy is in a recession.

[Spartan]

^ They've already made their acquisitions from CHK and construction prices are on the upswing due to the booming national economy, just as when things were good here they were in a slump due to the national recession. The construction industry is very transient and really just goes where the jobs are.

Why not? OKC is lacking in retail options, they've put together a plan, have leases secured and have been very successful in filling all of the empty retail spaces they took over.

Chisholm Creek.

I really want them to finish this great project. But I wouldn't be surprised if our local economic crisis, brought on by ourselves, and the frosty local reception, just convince them to invest elsewhere. That's what's at stake when IDIOTS burden them with embarrassing lawsuits conflating 5 stories of multi-family with NYC. In the end it will be OKC that isn't good enough for 5 stories of multifamily. Period.

Really hope the chamber and city are involved to the fullest extent, doing whatever it takes to keep Glimcher's confidence up.

[sooner88]

^ They've already made their acquisitions from CHK and construction prices are on the upswing due to the booming national economy, just as when things were good here they were in a slump due to the national recession. The construction industry is very transient and really just goes where the jobs are.



Chisholm Creek.

I really want them to finish this great project. But I wouldn't be surprised if our local economic crisis, brought on by ourselves, and the frosty local reception, just convince them to invest elsewhere. That's what's at stake when IDIOTS burden them with embarrassing lawsuits conflating 5 stories of multi-family with NYC. In the end it will be OKC that isn't good enough for 5 stories of multifamily. Period.

Really hope the chamber and city are involved to the fullest extent, doing whatever it takes to keep Glimcher's confidence up.

That's implying that these types of lawsuits only happen in OKC, which is hardly the case.

[Spartan]

No but they do take on an agrarian flavor here, is all I'm saying. If you're looking for uniqueness, how about our uniquely faltering economy right now?

[PhiAlpha]

No but they do take on an agrarian flavor here, is all I'm saying. If you're looking for uniqueness, how about our uniquely faltering economy right now?

You act like Oil and Gas is the end all be all indicator of the economy in OKC and even if it was, that the energy slump isn't causing issues anywhere else. News flash, the economy in OKC is still pretty good compared to the rest of the country even after a year and a half of tumbling oil prices.

[Rover]

You act like Oil and Gas is the end all be all indicator of the economy in OKC and even if it was, that the energy slump isn't causing issues anywhere else. News flash, the economy in OKC is still pretty good compared to the rest of the country even after a year and a half of tumbling oil prices.

Not sure I would double down on that argument. This will be a tough year. Projects are being looked at very differently in most all of the oil areas (except Dallas). Banks and financiers are pulling back the reins just a little. I think everyone is dragging their feet just a bit to see how the dust settles. Things won't necessarily be abandoned...just deeeellllllaaaayyyyeeeddddd.

[PhiAlpha]

Not sure I would double down on that argument. This will be a tough year. Projects are being looked at very differently in most all of the oil areas (except Dallas). Banks and financiers are pulling back the reins just a little. I think everyone is dragging their feet just a bit to see how the dust settles. Things won't necessarily be abandoned...just deeeellllllaaaayyyyeeeddddd.

It will be a tougher year, no doubt. I'm just tired of the end of the world posts acting as if every project in OKC is directly tied to the price of oil. Especially from generally "holier than thou" posters like Spartan.

[Spartan]

The problem is when you accuse someone of being holier than thou for using facts and knowing things, it makes it kind of hard to keep a conversation going. I'm not sure what exactly you want.

We have rising unemployment at a time when other states continue to instead gain jobs. We have a $900 million budget shortfall at the state level, which is about to be nothing compared to what follows. While other oil and gas tea party kinda states are also hurting right now, nowhere else in the country is really talking about closing schools down before the academic year is even over. I know that's not a serious option, but it's serious enough to basically pit MAPS against education now (sales tax). Other non-oil and non-tea party states are flush with cash right now, realistically.

The city is also hurting, we have declining sales tax revenues. We're actually unique in the state in that regard. Even Tulsa has positive sales tax receipts. The city manager has explained our unique financial position on the basis of oil and gas, so you can take that for what it's worth. The council seem to trust his insight.

http://newsok.com/article/5468725

Things are not good and I just think it's for the best that we acknowledge that. It helps show we're serious about taking full advantage of our opportunities, which are tremendous. The reality is that things are never as good as they seem, and things are never as bad as they seem. But OKC really does squander its opportunities, which bugs me because we all know that we can have a great city. I get annoyed at the highly destructive contingent of people that think this is greatness. Eureka!

Glimcher is one of those opportunities that I hope we bring to fruition. They have control of the best site in the entire metro, in a metro that really lacks any dignified destination retail, which is shocking considering it's not a small metro. Huge opportunity for Glimcher, but it is now a race against Chisholm. That other project is further out, has lesser demographics, and will soon be surrounded by a huge swath of Class C apartments and retail, no matter how sustainably they build Chisholm.

P.S. Stop getting off the Glimcher topic. If you have beef with me, just send me a private message, and I'll gladly print it off and file it in my suggestion box. Heck, I'll print two copies! :P

[warreng88]

This is strange:

Nichols Hills Plaza seeks percentage of tenants’ sales

By: Molly M. Fleming The Journal Record February 4, 2016

NICHOLS HILLS – Katherine Buxton has owned the Gretta Sloane women’s clothing store for about seven months. In 2007, Buxton’s friends Kristin Carson and Katherine Nichols opened the Nichols Hills Plaza boutique.

Buxton said she always wanted to own a store and has big plans for the contemporary casual retailer.

“I want to put more energy into it,” she said. “I want to widen the price range and increase the number of designers we have.”

But Buxton is concerned about her store’s future. Landlord WP Glimcher is asking for a percentage of sales, which previous owner Chesapeake Energy Corp. never asked for in the lease agreement. Buxton’s lease rate is also increasing.

One office tenant said its lease rate has increased 23 percent, from $860 to $1,060.

Another longtime Nichols Hills Plaza retailer said her lease will be higher as well, and she was asked to return a sales percentage, though she did not want give her name or store.

“(Asking for a sales percentage) is what you do with national retailers,” Buxton said. “As a local retailer, that percentage-of-sales piece is hard.”

Buxton said she is negotiating her lease, but Glimcher is asking for a natural breakpoint, which means she would only have to pay a percentage if her sales go over a minimum amount.

Glimcher is also asking for an increase in common area maintenance charges, with some retroactive fees added, according to tenants.

While the lease terms are being configured, Buxton said she’s having fun operating her store. She is hosting events to bring people to the square, including a shopping day Saturday to benefit Court Appointed Special Advocates.

In the last seven months, Buxton has renovated the store and doubled the number of clothing lines. She wants to add more cocktail dresses, activewear and dressy business attire.

“I don’t want to carry anything anyone else carries,” she said. “I want it to be fun.”

[Pete]

Percentage rent is very common, especially among big national developers.

And it's becoming more common among local landlords, too. Hearing more and more about this from restaurant operators in particular.

[Spartan]

Shouldn't percentage of sales be more favorable to local retailers? That would basically seem like flex rent.

[Zorba]

The good thing about percentage of sales is it (at least theoretically) gives the landlord an incentive to invest in getting people to the shopping center. So this could mean more advertising or improvements, etc.

When I worked as a carnie almost every event we did charged a percentage of sales over a certain amount. The only ones that didn't were small events that just wanted rides and basically didn't charge anything.

[Pete]

Shouldn't percentage of sales be more favorable to local retailers? That would basically seem like flex rent.

They pay base rent plus a percentage of sales. And I'm sure the base rent in NHP is not cheap.

[ljbab728]

An update by Brianna.

http://www.oklahoman.com/article/547...rlyAccess=true

An Oklahoma City attorney who is suing over plans to expand the Triangle at Classen Curve development has dropped the developer from her lawsuit, but is still moving forward with claims against Oklahoma City.

Assaf said her decision to drop claims against WP Glimcher was merely procedural, and she is still fighting Oklahoma City in court over its approval of plans for the Triangle expansion.

[bchris02]

Any movement on this?

[Urbanized]

What is the status of this project?