Mountain of Retail Distress May Contain Just a Molehill of Opportunities
Retail Traffic reports: Could it be that the avalanche of retail properties falling into distress will not actually occur this cycle? According to Retail Traffic, which cited data aggregated by Real Capital Analytics (RCA) in a recent article, just $1.6 billion in US retail properties fell into distress during the second quarter. This was the lowest absolute amount since the third quarter of 2008. Concurrent to the trend of less new distress, resolutions of current outstanding distress have accelerated, with lenders having worked out more than half of this cycle’s retail distress as of the end of the past quarter.
Retail Traffic interviewed RCA Managing Director Dan Fasulo on these results, and his initial observation was that, “That’s good news for retail property owners looking to sell or refinance their centers, but bad news for investors looking for steep discounts on core properties.” Mr Fasulo focused on the metrics behind workouts, stating that sales of retail properties out of distress now account for around 15 percent of total retail sales in any given month. That comes as a clear sign that the lender practice of “extend and pretend” is coming to an end and that the investment opportunities this distress cycle was forecasted to yield may not come to fruition.
For more on Mr Fasulo’s thoughts on retail distress an what it means for that sector in general—including geographical trends, how a double-dip recession might play out for retail, and a comparison of this cycle to others in the past—please see the full interview on Retail Traffic’s site.
View the full article on Retail Traffic: Mountain of Retail Distress May Contain Just a Molehill of Opportunities
Articles related to this topic:
Latest RCA Distressed Asset Update Speaks to Health of Market
Can CRE Activity Sustain Through the Macroeconomic Shocks?
CMBS Pipeline Narrowing after US T-Bond Downgrade
Tampa's Multifamily Market Posts Strong First Half
North Carolina Triangle a Favorite Alternative to Primary Markets
Suburban Long Island Complex Flips after Successful Repositioning
Five Mile May Take a Larger Slice As Innkeepers USA Gets Carved Up
Over 325 Southeast REO Commercial Properties & Loans Coming to Auction
Europe Draws Mortgage REITs Seeking Distressed Property Deals
CBRE Forms $200 Million JV with REIT to Acquire Grocery Shopping Centers
NYC Tops London as Favorite Destination for Commercial Property Investment
Large Retail Joint Venture Finalized Between TIAA-CREF and CBL
Slow But Steady Pace in CRE Recovery
Kevin Imboden of RCA Appointed to ICSC North American Research Advisory Task Force
Posted by: Nina Turner