comreguy

Thanks for the welcome. I enjoy the discussion on this board, and the clearly educated people that post here. I hope I can add something, although I can't promise that what I try to add is an addition at all. I did make conflicting comments, and I hope I backed the second comment up with good info so you could understand my line of thinking. I originally related my 3-5 demos comment on a typical retail market. After some conjecture, I revised my statement. Little Rock is the most difficult retail market I have ever encountered. I think you make a great assessment in your review of the market. Look at Chenal and the hodge podge of small power centers and large format retailers scattered around the road. Promenade and Midtowne and Pleasant Ridge and Shackleford further divide (and confuse) the market. Furthermore, with Benton/Bryant coming into their own, it also impacts the demand for retail, especially at Shackleford and Col Glenn.

I've been in retail for 10 years, with the majority of that in real estate site selection. Demographics plays a large role. For Apple, they will likely do one store in Little Rock. So, demographics won't be limited to 3-5 miles as I stated earlier and probably will be focused more regionally. I don't think you can argue that Little Rock has a lower demographic than the majority of markets that Apple currently has an outlet in. But, I am very conservative in my thinking, and am an avid Apple supporter and have purchased several products from them in their stores elsewhere. I've simply learned through experience to be pessimistic when underground announcements about exciting retailers come about. More often than not it's someone getting caught up in the hype and not reality.

Regardless of who you see walking out of the store, if you draw a 3-5 mile ring around University and Markham, you will see that the income, household income, ethnicity, etc. do not fit in with the Apple model. That being said, shops have been doing well in the area inspite of the demos (save Lewis and Clark, which is poorly merchandised and operated). In today's economic climate, retailers are not taking flyers on locations that don't fit specifically into their growth model. Ask the developers of Park Avenue about the interest in their project and current leasing progress if you don't believe me. In 2007 they were on fire with interest from tenants. In 2008, they are lucky to get a national retailer to return their call.

It's not inevitable at all. The demographics don't support it at Midtowne, but the cotenants are closer in line to what Apple will accept. Park Avenue is a Target Shopping Center, plain and simple. Apple and Target don't go hand in hand. Park Avenue will end up as a power center with apartments and office, nothing more. Chenal is a reach, because it is light in density. But, the mix is appropriate for an Apple store. I would bet on them, if Little Rock ever gets a store. Otherwise, enjoy Best Buy and shopping online for iPods, etc.

Don't hold your breath...

All Bonefish's are corporate