October 20, 2015
Irvine-based AuctIrvine-based Auction.com has released a report evaluating the best areas to both buy and sell retail commercial real estate properties.
The firm says the five best cities in which to buy right now are Fort Lauderdale, Miami, Austin, Los Angeles and San Jose. The common denominator they all share is either improving economies or tightening rents due to limited supply.
The best places to sell? Large metros with a good deal of supply and flat growth. Those locales are Baltimore, Pittsburgh, St. Louis, Detroit and Philadelphia.
When asked by Connect Media about the possibility of new construction taking place in the retail sector any time soon, Auction.com’s Executive Vice President Rick Sharga told us:
“There are several reasons why it doesn’t seem likely that we’ll see a boom in retail construction anytime soon. A higher percentage of retail sales are happening online, reducing the need for large brick and mortar facilities. Vacancy rates are still a little too high to warrant new construction in most markets. And as Millennials move in large numbers into downtown areas, it’s more likely that we’ll see renovation of existing structures into urban retail centers than ground-up retail development.”