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IN BUSINESS WAL-MART, TARGET AND COSTCO ARE BUCKING THE TREND BIG BOXES, FROM PAGE 7 seen the impact. Circuit City is gone. So are Borders and Ultimate Electronics. And Best Buy recently announced that it would close 50 big-box stores and open 100 of what it's calling Best Buy Mobile stores by 2016. The company hasn't disclosed whether any of the closures or new stores would be in Nevada. Some say the big-box concept "The effect on the commercial market is that I think we'll see more interest in small spaces and less on big spaces. And we may see more interest in warehousing." — Stephen Brown, UNLV's Center for Business and Economic Development. Grant said. actually being in California." isn't suffering in all categories, noting retail giants Wal-Mart, Target and Costco continue to open large stores — but Wal-Mart and Target also are opening smaller operations, primarily compete with grocery stores. In Southern Nevada, WinCo Foods, a supermarket that could be considered a big-box like outlet for groceries, opened two stores last month. "The effect on the commercial market is that I think we'll see more interest in small spaces and less on big spaces," Brown said. "And we may see more interest in warehousing. We're in a good place to ship into California without market, vacancies are going to occur," to commercial real estate professionals in Southern Nevada are watching closely and adjusting their marketing efforts accordingly. of David Grant, the retail International senior vice president division in Las Vegas, of Colliers is among those who are skeptical that the big-box era might be ending. "Unfortunately, in a down economy and a down real estate Las Vegas' location on Interstate 15 and Reno's position on Interstate 80 are ideal for shipping centers. Both cities also are on primary freight rail lines, and McCarran International Airport is unsurpassed as a cargo hub, with flights to more than 100 cities daily. As the big-box trends play out, He cited the arrival of WinCo as an example of how not every category is being affected by an apparent big-box downturn. The trick, he said, is finding new customers to fill behind by former tenants. the spaces left Trend shifts in big-box stores and the growth of online retail are pushing an old issue to the front burner: If Internet transactions keep growing as terrestrial sales shrink, legislators are going to be asked to step in. Federal lawmakers have already drafted House and Senate versions of legislation addressing how — or if — online transactions should be assessed sales taxes. Bryan Wachter, director of public and government affairs for the Retail Association of Nevada, said there are Some online retail outlets have said they would relocate their warehouse and distribution said centers his if states were to impose a sales tax on their transactions. Wachter association advocates that all companies operate on a level playing field and that online transactions shouldn't warrant an exemption. But he said it's too early to say whether the association would submit any proposals for the Nevada Legislature to consider in its 2013 session if federal lawmakers fail to act. But the fact that online sales seem to be trending up as the number of big-box stores declines suggests that the issue will be something lawmakers will have to contend with soon. growing disputes about the sales tax issue, with online they retailers saying should be exempt and brick- and-mortar-only outlets arguing that they should be taxed at the rate of the buyer's home. That likely would play against Nevada, which has a higher sales tax rate than most states. 10 | 16 APRIL 2012 |