STACKING UP
Friedman Billings Ramsey research compares strip center REITs by the average demographics surrounding existing properties. Federal Realty leads the pack in highest average incomes, but its properties also sit in the markets with the lowest population growth potential.
| Company | Aggregate Household Income ($M) | Average Household Income ($) | Population | 5-Year Estimated Population Growth |
|---|---|---|---|---|
| Federal Realty | 4,815 | 96,200 | 132,808 | 2.60% |
| Regency Centers | 3,010 | 89,583 | 91,041 | 8.8 |
| Saul Centers | 2,972 | 85,526 | 90,778 | 10.7 |
| Pan Pacific Retail | 2,674 | 68,957 | 116,531 | 7.5 |
| Inland Retail | 2,485 | 83,864 | 81,317 | 5.8 |
| Weingarten Realty | 2,477 | 66,151 | 98,072 | 6.5 |
| Acadia Realty Trust | 2,442 | 79,864 | 83,437 | 2.6 |
| Kimco Realty Group | 2,357 | 67,605 | 93,600 | 3.8 |
| Equity One | 2,165 | 73,332 | 77,506 | 8.7 |
| Developers Diversified Realty | 1,992 | 69,882 | 70,741 | 4.6 |
| New Plan Excel Realty Trust | 1,947 | 68,221 | 75,678 | 4.6 |
| Cedar Shopping Centers | 1,923 | 61,889 | 86,083 | 2.8 |
| Heritage Property | 1,922 | 70,501 | 68,848 | 3.7 |
| Ramco-Gernshenson | 1,908 | 73,988 | 66,645 | 5.9 |
| Kite Realty | 1,610 | 82,452 | 53,429 | 11.4 |
| Group Average | 2,447 | 75,844 | 85,768 | 6 |
| Sources: Claritas, SNL, Company reports, Friedman Billings Ramsey | ||||
OFFICE SPACE
Staples leads the sector with 576 stores, nearly one-third of which are located in the New York and Los Angeles markets. Office Depot, however, has a greater percentage of locations in the top 25 metropolitan areas, according to Morgan Stanley research.
| MSA | White Collar Employment | Employment Growth (5-year CAGR, %) | Staples | Number of Stores Office Depot | Office Max |
|---|---|---|---|---|---|
| New York (N.Y., N.J. ,Conn.) | 5,825,973 | -0.1 | 126 | 19 | 22 |
| Los Angeles-Long Beach-Santa Ana, Calif. | 3,698,955 | 0.2 | 69 | 57 | 21 |
| Chicago-Naperville-Joliet (Ill., Ind., Wisc.) | 2,989,907 | -0.5 | 22 | 45 | 49 |
| Washington-Arlington-Alexandria (DC, Va., Md., W.Va.) | 2,013,560 | 2.0 | 41 | 26 | 0 |
| Philadelphia-Camden-Wilmington (Pa., N.J., Del., Md.) | 1,885,361 | 0.2 | 49 | 15 | 14 |
| Dallas-Fort Worth-Arlington, Tex. | 1,765,061 | 0.0 | 21 | 39 | 23 |
| Boston-Cambridge-Quincy (Mass.,N.H.) | 1,750,136 | -0.9 | 48 | 4 | 11 |
| Miami-Ft. Lauderdale-Miami-Beach, Fla. | 1,709,620 | 1.8 | 5 | 42 | 22 |
| Houston-Baytown-Sugarland, Tex. | 1,610,063 | 0.8 | 0 | 34 | 19 |
| San Francisco-Oakland-Fremont, Calif. | 1,527,267 | -1.4 | 16 | 19 | 12 |
| Atlanta-Sandy Springs-Marietta, Ga. | 1,400,575 | 0.4 | 22 | 34 | 22 |
| Detroit-Warren-Livonia, Mich. | 1,379,185 | -1.5 | 17 | 13 | 19 |
| Minneapolis-St. Paul-Bloomington (Minn., Wisc.) | 1,184,897 | N/A | 0 | 9 | 23 |
| Phoenix-Mesa-Scottsdale, Ariz. | 958,192 | 2.5 | 23 | 0 | 24 |
| Seattle-Tacoma-Bellevue, Wash. | 953,151 | -0.1 | 14 | 20 | 12 |
| San Diego-Carlsbad-San Marcos, Calif. | 893,629 | 1.4 | 18 | 18 | 0 |
| St. Louis (Mo., Ill.) | 878,679 | N/A | 0 | 13 | 16 |
| Baltimore-Towson, Md. | 828,422 | 0.5 | 17 | 12 | 0 |
| Denver-Aurora, Colo. | 781,066 | -0.4 | 0 | 19 | 15 |
| Tampa-St. Petersburg-Clearwater, Fla. | 776,940 | 1.7 | 14 | 17 | 0 |
| Pittsburgh, Pa. | 766,661 | -0.2 | 12 | 5 | 8 |
| Cleveland-Elyria-Mentor, Ohio | 732,673 | -1.2 | 7 | 0 | 16 |
| Riverside-San Bernardino-Ontario, Calif. | 656,815 | 4.3 | 22 | 13 | 7 |
| Kansas City (Mo.-Kan.) | 646,416 | 0.5 | 0 | 9 | 12 |
| Cincinnati-Middleton (Ohio-Ken.-Ind.) | 640,025 | 0.3 | 13 | 7 | 4 |
| TOTAL | 38,253,229 | 576 | 489 | 371 | |
| % of Stores in Top 25 | 46% | 48% | 40% | ||
| % of Stores in Top 25 with Positive Employment Growth | 25% | 32% | 18% | ||
| % of Stores in Top 25 with Employment Growth > 1% | 10% | 11% | 6% | ||
| Source: Company data, Trade Dimensions, U.S. Department of Labor, Morgan Stanley Research | |||||
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