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Non-Tech : Investing in Real Estate - Creative Opportunities
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From: Micawber9/19/2012 7:36:01 AM
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THE 30-MINUTE INTERVIEW David B. Henry
By VIVIAN MARINOPublished: September 18, 2012

Mr. Henry, 63, is the vice chairman, chief executive and president of the Kimco Realty Corporation, a real estate investment trust based in New Hyde Park, N.Y., that owns and operates nearly 930 neighborhood and community shopping centers in North and South America, totaling 136 million square feet...

Market rents in 2009 dropped 25 to 30 percent, and perhaps we recovered a third of that. But rents are still down from peak levels.

Q. What is your average rental rate?

A. Our average rent is about $12 a foot, which I would argue is considerably lower than market rents because many of those leases are older leases. So if you wanted a guess, I’d say the national average for rents is $20-ish a foot.

In the last year and a half we bought about 40 shopping centers and we sold about 60. The ones that we bought were bigger than the ones we sold, so net-net we’re growing.

Capitalization rates for the good stuff are 6 percent, and in some places in the high 5 percent.

So they are paying cap rates in the 5 to 6 range to buy this stuff? I have a Kimko center near me- in an affluent area- that has been 50% dark for the past 5 years. And investors are falling over each other to buy REITS?

nytimes.com
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