Florida Investors Still Playing it Safe with Focus on Core Properties
Retail Traffic reports: “With the Sunshine State still carrying too much housing stock and its unemployment rate above the national average, investors have avoided risk and gravitated toward necessity-based retail in markets with established populations.”
So stated Retail Traffic Associate Editor Elaine Misonzhnik in a recent article detailing how, at least for Florida investors, core product in major cities remains at the top of commercial property buyers’ shopping lists. Ms Misonzhnik relied on data aggregated by Real Capital Analytics (RCA) to state that, while nationally, $2.1 billion in retail sales in the first six months of 2011 posted a 33 percent gain over the same period last year, “…the the vast majority of investors looking for acquisitions in Florida want core assets in primary markets…preferably grocery-anchored centers or power centers.”
This has led to some aggressive competition among investors, which has driven initial yields on primary market retail properties down by 53 basis points over the past 12 months, to 7.5 percent, and the average price for space up by 14 percent, to $144 per square foot. Many market analysts are pointing out the similarities between many recent quality Florida retail property sales and some market-peak sales of 2005 or 2006.
View the full article on Retail Traffic: Florida Investors Still Playing it Safe with Focus on Core Properties
Articles related to this topic:
Can't Afford a Trophy Office Tower? Single-Tenant Properties May be an Alternative
Tampa's Multifamily Market Posts Strong First Half
Private Equity Firms Grow their CRE Investment War-chests
Pension Funds Reevaluate as Trophy Property Pool Dries Up
Europe's Leading Markets Still Magnetizing Investment Capital
North Carolina Triangle a Favorite Alternative to Primary Markets
Suburban Long Island Complex Flips after Successful Repositioning
Blackstone on the Retail Acquisition Path
Posted by: Nina Turner