Ask the Expert: Where are retail real estate investors looking for deals?
“Investors are looking for deals in areas of population growth. Outside of institutional investors, many retail investors are getting priced out of in-town deals in major markets. Retail investors, in turn, have chased deals in large metro suburbs or top-tier coastal markets. The common consensus is that we likely have plateaued on CAP rate levels. So, for value-added investors to pull the trigger on deals in this market, they are looking for projects where there may be leasing upside via filling vacant space or raising below-market rents. Fully leased deals with rent levels at the top of the market have become harder for sellers to move. The reason is that the buyer pool for those deals has continued to shrink.”
Senior Director, Retail Investment Sales