June 1, 2017
Investors are focusing on anchored retail centers, particularly those with grocery tenants, as one positive path for future growth. The latest research by Real Capital Markets reveals the ways in which the retail sector continues to evolve as a result of large tenant shake-ups and e-commerce pressures.
Real Capital Markets’ Tina Lichens says “Participants in the Real Capital Markets Retail Investment Sentiment Report confirm what largely has been known, that a confluence of events, some that have been years in the making, are having a significant impact on this segment of the commercial real estate market.”
Highlights of the RCM survey include:
- Greatest Opportunity: Anchored shopping centers are viewed as the most attractive retail investment opportunity, and are more easily underwritten
- Greatest Threats: Overall shifting consumer buying habits was the top threat, followed by the impact of e-commerce and big box vacancy rates
- Greatest Influencers: Retail issues and financial market concerns influence investment positions most.
- Motivators: Little or no correlation found between investors characterizing themselves as net buyers and higher trending interest rates; investors still aren’t motivated to accelerate acquisition plans in order to lock in extremely low rates
- Buy, Sell, Hold?: Majority self-classify as net buyers, versus holding to manage existing acquisitions or waiting to see what happens
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