The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
June 5, 2001
A Barter Deal Will Help Californians Deal With Acute Electricity Shortage
The Northwest has available an additional 350,000 megawatt-hours of electricity through the Bonneville Power Administration (BPA). Whereas, down in California such power is certain to be scarce and costly over the coming summer months.
Enter a creative barter agreement...for every one megawatt-hour of power the BPA sends to California during daily peak demand, the California Independent System Operator (which manages California's power systems) will return two megawatts when daily demand is low.
estimated that the barter arrangement will benefit
BPA by saving them $100 million, which would have
been spent buying electricity at a higher price,
in spot-market purchases.
Barter Opportunities Ahead
A percentage of all advertising is bartered, and more will be coming on stream in the years ahead, as real estate developers are turning their shopping malls into marketing tools in the 1990s, when they installed billboards to generate additional revenue.
A recent joint venture signed between Mills Corp. and the William Morris Agency promises to bring on thousands of new locations of their Venue3D unit. These units will give marketers direct access to more than 1 billion consumers as they shop, eat, and seek entertainment at the joint venture's retail centers, hotels and other commercial locations each year.
Venue3D also includes Rouse Co., owner of New York's popular South Street Seaport; the 40-location Fairmont Hotels & Resorts chain; Vornado Realty Trust, owner of the L.A. Mart; Westcor Realty, which owns the FlatIron Crossing mall near Denver; and Urban Retail, which owns Water Tower Place mall in Chicago.
Announces Alliance With Retail-Only
ICON International, a corporate barter company, has announced forming a strategic alliance with ChainLinks Retail Advisors Inc. A retail-only real estate services provider which specializes in tenant representation, property management, project leasing, and other related services for real estate clients.
Troy Peple, president and CEO of ChainLinks, says, "This relationship will allow us to offer our clients a creative disposition technique that will effectively dispose of under-performing assets while avoiding millions of dollars in write-offs." ChainLinks completed more than 4,045 transactions totaling approximately 46 million square feet of retail space nationwide in 2000.
According to Geoffrey Disston, ICON V.P. of real estate, "ChainLinks is a market leader in efficiently handling property disposition. They have the capability to rapidly and accurately evaluate a property and market opportunity with a large army on the ground that no other company has."
Through the alliance, Connecticut-based ICON will pay an organization more (in trade credits) for a property than it typically can get in the open market. The trade credits are then used to save cash on the organization's budgeted line-items.
Here And There. . .
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