Shopping Centers Today -> December 2004
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Gas prices won’t hurt Christmas sales, survey says

Despite higher gasoline prices, U.S. consumers will spend more on Christmas gifts this year than last, according to a survey commissioned by ICSC and UBS. Respondents said they’ll spend an average of $703 this holiday shopping season, slightly more than the $636 they said they’d spend last year. Sixty three percent said rising gas prices will not affect their expenditures.

Taubman close to signing South Korea deal

Taubman Centers is looking to develop the 10 million-square-foot retail portion of a $20 billion, 95 million-square-foot, mixed-use development in South Korea. Morgan Stanley Real Estate Funds and the project’s master developer, Gale International, would also participate in the venture. Gale International, an arm of Florham Park, N.J.-based real estate services firm The Gale Co., will work with South Korean partner POSCO E&C to develop the 1,500-acre project, which is to be called New Songdo City.

New Macerich division to run upscale malls

The Macerich Co. launched Lumenati, a division to oversee the development and redevelopment of upscale properties. Lumenati, which is to have its own executives and operate independently, will encourage designer and luxury retailers to expand on the West Coast, offering them shopping centers befitting their style, says Tracey P. Gotsis, SCMD, senior vice president of marketing for the firm’s Westcor division.

Disney turns stores over to Children’s Place

Children’s Place bought 313 Disney Store units in the United States and Canada in a deal that closely resembles a licensing agreement. The kid’s clothing retailer says it may push that count to 600 stores in the coming years. Starting in November 2006, Children’s Place will pay Disney royalties on the store’s sales. Children’s Place says it will spend up to $100 million remodeling and operating the stores. The retailer says it plans to open Disney outlet stores and establish an online presence separate from the Disney Web site. Disney will continue to operate its flagship store in New York City and stores inside Disney theme parks, under the Worlds of Disney banner.

Law gives landlords depreciation relief

President Bush signed into law a bill that provides landlords hard-won leasehold depreciation relief. The American Jobs Creation Act of 2004 gives retail property owners a 15-year depreciation period for leasehold improvements initiated after the law’s enactment on Oct. 22, 2004, but before Jan. 1, 2006. Under the old tax code, leasehold improvements depreciated over a 39-year schedule. The new law is a significant victory, but ICSC and other real estate groups will work to make the relief permanent, says Betsy Laird, ICSC staff vice president for federal government affairs.

Costco opens second home store

Costco is expanding an experimental concept that sells only upscale home furnishings, including name-brand bedding, carpeting, furniture and window treatments. The second Costco Home store opened in Tempe, Ariz., in November. Costco opened a store in Kirkland, Wash., about two years ago.
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