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Levin Management Corporation
975 Route 22 West
North Plainfield, New Jersey 07060

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Release Date: Monday, February 01, 2010

Media Contact: Christine Ziomek (201) 796-7788

Levin Tenant Survey Signals Retail Rebound In Five-State Portfolio

Late Holiday Season Sales Rise and Signs of Expansion are Among Findings of a Canvass of Firm's 1,000-Tenant Roster

NORTH PLAINFIELD, N.J., Feb. 1, 2010 - Whether or not the recession is officially over is debatable, and sales reports during the recent holiday season were decidedly mixed, but a post-holiday tenant survey by Levin Management Corporation offers some promising signs. The findings include an apparent surge in late holiday season sales, and indications that many retailers expect to expand during 2010.

The survey canvassed store managers of a roster of 1,000 Levin property management tenants in the states of New York, New Jersey, Pennsylvania, Virginia and North Carolina. 90% of Levin Management's 12.5 million-square-foot portfolio consists of open-air retail centers, with results of the survey therefore more indicative of that genre rather than enclosed malls.

"These results provide a closer look at some of the retail trends that have been discussed in the media," said Matthew Harding, President and COO of Levin Management. "We've been seeing the 'big' pieces, but our survey really brings the results down to street level. And we feel that the results are promising in terms of the year ahead."

Asked how their holiday 2009 sales compared to 2008, 55.2% of store managers said they were either the same or better, and 44.8% said they were down. Actual sales increases were reported by 22% of respondents, with most citing rises of 20% or less. Most of those posting drops pegged them in the 0-30% range.

"Those results are obviously mixed," Harding said. "But the fact that 33% said their sales held steady and 22% reported increases is an indication that the consumer retail market is beginning to stabilize. Keep in mind that the projections for the holiday season were not very good."

Timing, Pricing, and Retail Categories Factor into Results

Given a range of dates to track holiday sales, responses from store managers indicate a trend of an early "Black Friday" rush, followed by a mid-December lull and another rush during the week before Christmas despite a major snowstorm along the East Coast. All of those polled said that between 10% and more than 50% of all holiday sales occurred in just the four-day period of December 21-24, with more than one-third crediting those four days with 21-30% of total sales.

Asked about promotional pricing in 2009 vs. 2008, 22.5% reported lower markdowns, 50.1% said their markdowns were the same, and 27% reported higher markdowns. And when asked about customer traffic, 42.5% reported lower traffic, 31.4% said traffic was about the same, and 25.9% reported higher traffic.

As far as key retail categories, 57.8% of food tenants (both grocery and restaurant sub-categories) reported higher sales during the holidays, 15.7% reported same as a year ago, and 26.3% reported lower sales. In the apparel category, 56.5% reported higher sales, 34.7% reported same, and just 8.6% reported lower sales.

"Again, the results are mixed," Harding said. "But we believe that they continue to show signs of a consumer market that is regaining traction."

Finally, in response to the question, will your company be looking for additional store locations in 2010, 37% said yes.

"The fact that more than one-third indicated they will add stores is a very positive sign," Harding said. "Even in the best of times, not all retailers are seeking to expand. The response to this particular question, in this current economy, is therefore encouraging.

"Overall, we believe the results of this survey corroborate the anecdotal evidence provided by the media," Harding said. "These statistics give us reason to be guardedly optimistic for the year ahead."

Levin currently maintains a growing portfolio of more than 80 diverse retail properties totaling 12.5 million square feet. Properties range from downtown stores to lifestyle centers, and from neighborhood and community centers to power centers in New Jersey, New York, Pennsylvania, Virginia and North Carolina. Levin offers a full range of services for its clients including leasing, property management, accounting, construction management, marketing and risk management.

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