RCA in the commercial property press:

Investors Still Cautious on Consumer-Dependent Retail Sector

Retail Traffic reports: A recent survey conducted by PwC indicated that investor’s outlook on the retail sector has continued to lag bullish opinions on the market as a whole. Retail Traffic quoted the survey report as stating that, “Consumers remain skittish as pessimistic reports continue to surface about the housing and labor markets. As a result, the bulk of the U.S. retail sector will be in recession through year-end 2012. Although the amount of U.S. retail stock in recession will greatly decline by year-end 2013, a significant recovery is not expected until year-end 2014.”

Retail Traffic pointed out that power centers fared worse than other types of retail properties during the downturn, though the niche has stabilized and more such assets have been trading recently. The magazine cited data aggregated by Real Capital Analytics to state that, “So far in 2011, nearly 70 power centers have sold for a combined average sale price of $180.00 per square foot...This asset total already surpasses the number of power centers sold for all of 2010 when 63 deals occurred, reflecting a combined average sale price of $135.00 per square foot.” Malls and strip centers have recovered even more strongly as the market enters a new cycle.

Articles related to this topic:

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 Retail Sector Posting Healthy Improvements as Investors Return
 Institutional Investors Ramp-Up Retail Spending in 2011
 Retail REITs Strategically Shopping Assets to Solicitous Market
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 Irish Private Equity Targeting Attractive UK and German Retail Assets

Posted by: Nina Turner

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