Retail Investors Seek Bright Spots
Commercial Property News reports: Times are tough for retail. "We don’t have a crystal ball here, but I think the economy is the wild card," said Dan Fasulo. "This is the first consumer-led recession we’ve had in two decades." Retail was also among the first sectors to bounce back in 2003-04 during the earlier part of the cycle, he noted.
Real Capital Analytics’ most recent analysis:
- New retail offerings hit $27.5 billion during the first half, a 12 percent jump year-over-year
- Retail property sales plummeted to $12.2 billion nationwide, a 62 percent drop from the first half of 2007
- Second-quarter retail investment sales totaled only $5 billion, a $2.2 billion drop from the first quarter
- Investors favored strip centers over malls in the second quarter, which saw no significantt mall sales
- Cap rates for strip centers have risen 40 basis points since the credit crunch hit
- Bankruptcies among national and regional retailers continue to mount; Mervyns and Steve & Barry’s are among the most recent.
View the full article on Commercial Property News: Retail Investors Seek Bright Spots
Posted by: Nina Turner