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IMF: West will save world from Asian flu

The economic crisis in Asia will not drag the rest of the world into recession, an International Monetary Fund report indicates. Strong economies in the United States, Britain and Canada will help drag the rest of the world away from the precipice of recession, said the report, which was issued this spring. "Growth in North America and Western Europe has been well sustained and appears likely to remain so," Michael Mussa, IMF's director of research, told Britain's The Daily Telegraph. "Domestic demand conditions -- robust in the United States, Canada and the United Kingdom, and strengthening in much of Continental Western Europe -- will facilitate the adjustment needed in Asia."

And the 10 best retail markets are ...

Which are the most promising retail markets in the United States? Valuation International Ltd., an Atlanta-based real estate consulting and appraisal group, puts Salt Lake City at the top of its hit parade. The company based its assessment on vacancy rates, GAFO sales, inventory per capita and household growth, claiming that opportunities are especially good in markets where retail supply is below 20 square feet per capita. The nine next most lucrative markets for retail, in descending order, are: Seattle; Minneapolis; Miami; Orange County, Calif.; Denver; Los Angeles; Orlando, Fla.; Atlanta; and Las Vegas.

... While the nine largest retail REITs are:

According to an Alliance Capital/CB Commercial survey, the largest retail REITs measured by percentage of total available property square footage owned are: Simon DeBartolo Group, 72,663,670 (12.4%); Kimco Realty Corp., 7,389,069 (4.7%); Developers Diversified Realty Corp., 25,002,888 (4.3%); General Growth Properties, 24,955,516 (4.3%); The Rouse Co., 22,844,900 (3.9%); Glimcher Realty Trust, 21,871,870 (3.7%); New Plan Realty Trust, 20,224,170 (3.5%); Weingarten Realty Investors, 19,226,600 (3.3%); and CBL & Associates Properties, 18,760,572 (3.2%). These numbers are as of presstime, prior to the closing of several major acquisitions.

Harlem: a poor area rich in promise

Developers are busy trying to capture some of the millions of dollars Harlem residents spend outside their area each year. The Blumenfeld Development Group, New York, plans a 500,000-square-foot mall in East Harlem, New York, anchored by The Home Depot and Costco. Construction work on the center, which is to be built on the site of a former factory, will begin late this year or early in 1999, and is set to end in the latter part of 2000. Nearby, a joint venture between Gabriel Associates, Bronx, N.Y., and Hartford, Conn.-based R2D is resulting in a Pathmark supermarket-anchored center. Meanwhile, Harlem USA, a shopping and entertainment complex, is planned in another part of the area, housing a Disney Store and Gap. Harlem residents spent a total of $2.4 billion last year, but 70% of this was spent outside the area, Harlem USA developer Drew Greenwald, president of New York-based Grid Properties, told Women's Wear Daily.

A burger, fries and soda. Cash or charge?

Up to now the most common question at the fast-food counter has probably revolved around fries, but this could be supplanted by another: "Cash or charge?" American Express has found its way into McDonald's franchises, Arby's and Little Caesars, among several other purveyors of fast food, and the trend is continuing in the fast-food industry. In a recent survey conducted by American Express, about 20% of consumers surveyed said they have used credit or charge cards at a fast-food restaurant in the past year.

UPS hopes stores will deliver fresh image

United Parcel Service is rolling out sleek full-service retail stores as part of a campaign to raise its profile and take some of Federal Express' overnight delivery business, according to Crain's New York Business. UPS has opened a 1,500-square-foot prototype on New York's Fifth Avenue to test the concept. UPS ships five times as many packages as Federal Express, yet the latter, whose name is synonymous with overnight delivery, enjoys a much higher profile. The new stores, which will use earth colors and aluminum accents, are part of an overall push by UPS to shed its image as a somewhat dowdy, if efficient, company.

Philadelphia's ship comes in

A Philadelphia city official evidently equates success with shopping malls and department stores. The city was hit hard by defense base closings, losing thousands of jobs when its naval shipyard closed in 1995. However, late last year Kvarner, a Norwegian shipbuilder, agreed to revitalize a large portion of the shipyard for a shipbuilding business. The news prompted Philadelphia Office of Defense Conversion chief Terry Gillen to remark to the Philadelphia Business Journal, "It's as if we had a shopping mall and just landed a Nordstrom." For more news on the rebuilding of the city's waterfront, see page 5.