March 9, 2017
By Dennis Kaiser
Connect Media will sit down with the industry leaders on March 16 at Connect Retail West for a panel entitled: “Investing in Retail: Strategies in 2017.” Retail experts will examine what primary, secondary, and tertiary markets are piquing the interest of investors for new opportunities and portfolio growth.
Matthews Real Estate Investment Services’ El Warner, who specializes in the disposition of institutional assets, shares with Connect Media the shifts he sees in the retail market, how companies are adjusting and which are the hottest investment markets in our latest 3 CRE Q&A.
Q: What trends do you see driving or impacting the retail investment market in the year ahead?
A: The continued shift in tenant space requirements and retail sales will directly impact the long-term viability of certain retail investments. Capital is thus flowing to strong retail locations with good pricing fundamentals, with entertainment or daily needs oriented product.
Q: How can or should companies adjust to meet the challenges?
A: Focus in on the price per land and price per pound of investments so that the leases in place do not over value the fundamentals of the real estate. There are still some very viable retail properties that are selling and strong retail pricing. And opportunities will continue to arise as there continues disruption within the retail industry
Q: What are the hottest investment markets or product types you see ahead?
A: Class A locations with daily needs and entertainment related retailers. There will be a continued flight to quality. However, some secondary markets with good property value fundamentals could be great buys, as long as the finished product has an exit market.
For comments, questions or concerns, please contact Dennis Kaiser