Why Retail Property Investors Are Still Looking To Acquire Assets

June 14, 2018

The retail market continues to see store closures and big-box vacancies. However, in spite of that change, commercial real estate investors are seeing opportunities to embrace a new type of space to acquire. They are looking to meet the needs of people that purchase goods and services they cannot get online, such as ice cream, gasoline or dry cleaning.

Below is an article from dailyherald.com that provides details on how retail investors are seeing a trend in experiential or some variation of mixed-use spaces that are being actively sought and acquired. After reading the article, give us a call at Caton Commercial so we can discuss the best strategy for finding the best property to meet your commercial real estate needs.

greatest threats to retail investing

Source: dailyherald.com | Re-Post Caton Commercial 6/14/2018 –  

Retail investors are still in a buying mode, as they continue to focus on finding assets that can meet the changing needs of today’s consumers and produce desirable returns, according to Real Capital Markets’ May 2018 Retail Investor Sentiment Report.

While big box vacancies and high-profile retail store closures continue to adversely affect parts of the industry, investors surveyed noted optimism in other retail segments. Retail owners who embrace new models — whether they are experiential or contain some variation of mixed-use — are considered to be in the best position to succeed in today’s retail environment.

“Retail may be the most diverse and bifurcated of all commercial real estate asset classes,” said Steve Shanahan, executive managing director at Real Capital Markets. “Certain subsets of retail perform well, are in great demand and push the market in terms of price and value. Others have issues and are part of what is leading investors to consider other options, such as exploring other asset types.”

In May 2018, RCM surveyed its U.S. database of retail investors to gauge their sentiment on various investment-related topics. Highlights of the 2018 RCM Retail Investor Sentiment Report include:

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