A Message From The Meyer C. Weiner Company
April 25, 2023
By: Joshua T. Weiner, President & CEO
By: Joshua T. Weiner, President & CEO
How did we get here? The last year has brought us the highest inflation rate in a generation. Costs of construction materials, goods, services and supplies are 20 to 30 percent higher than a year ago. Labor costs are up significantly. With interest rates over double what they were, the cost of capital has increased to the point of being a leading cause of development being delayed or shelved, if not abandoned altogether. The rise in capitalization rates has lowered the value of income producing property requiring substantially more in equity investment coupled with lower entrepreneurial return. And, this state of affairs in the world of commercial real estate presumes that access to these building blocks remains available in an environment of supply chain disruption, labor shortages, financial stimulus over and a wave of economic challenges leading to some bankruptcies.
Sounds pretty dark and gloomy, doesn’t it? There are many factors that brought us to the current condition, and these will be the subject of debates, treatises and political campaigns for years to come. However, we are in the business of dealing with the long-term future and our ability to adapt to changing conditions is what gets us to that next rung on the ladder of success.
In preparing for our ICSC convention participation, as I have 51 times before, we will count our many blessings and, while this time it’s different, recall the many lessons we have learned in our 75 years in business.
We remain optimistic and excited about the future because:
So, the real question isn’t, “How did we get here?” The real question is, “Where are we going?” At its heart, what we do is solve problems. The arena is income producing real estate, but the test and the outcome are all about solving problems. And, solving problems depends on one’s ability to make decisions, more right ones than wrong ones.
Success is a collection of problems solved. To solve a problem, you need to make decisions. No problem was ever solved by doing nothing.
I find comfort in a quote from Mr. Disney. Not Walt, but his brother and partner, Roy, “When your values are clear to you, making decisions becomes easier.”
I look forward to many years of decision making.
“Let’s have a great show!”
Sounds pretty dark and gloomy, doesn’t it? There are many factors that brought us to the current condition, and these will be the subject of debates, treatises and political campaigns for years to come. However, we are in the business of dealing with the long-term future and our ability to adapt to changing conditions is what gets us to that next rung on the ladder of success.
In preparing for our ICSC convention participation, as I have 51 times before, we will count our many blessings and, while this time it’s different, recall the many lessons we have learned in our 75 years in business.
We remain optimistic and excited about the future because:
- The Federal Covid-19 Emergency Declaration has expired.
- Our team remains dedicated to our properties.
- Our locations have value that transcends traditional investment metrics. We will attract the best tenants in both performance and financial strength.
- The value we derive is in owning our properties for a long time. This environment is just for now.
So, the real question isn’t, “How did we get here?” The real question is, “Where are we going?” At its heart, what we do is solve problems. The arena is income producing real estate, but the test and the outcome are all about solving problems. And, solving problems depends on one’s ability to make decisions, more right ones than wrong ones.
Success is a collection of problems solved. To solve a problem, you need to make decisions. No problem was ever solved by doing nothing.
I find comfort in a quote from Mr. Disney. Not Walt, but his brother and partner, Roy, “When your values are clear to you, making decisions becomes easier.”
I look forward to many years of decision making.
“Let’s have a great show!”