County-Level Education Data, Trend Savvy Offer Valuation Guidance
Progressive Grocer reports: As investors and owners strive to value retail centers, they can draw on a correlation between college education levels, vacancies and gross leaseable area to predict performance. This edition of CPN and sister business Nielsen Claritas’ quarterly reports provides a close-in look at counties that stand out around the country.
Over the next several years, one of the most common questions in commercial real estate will be, "What's that retail center really worth?" A first-quarter survey of distressed assets offers a clue as to how often that question will apply to underperforming assets. Through the first quarter, 1,276 retail properties were classified as distressed by Real Capital Analytics, Inc. That is the most of any property sector and represents assets valued at up to $16.8 billion--second only to the $18 billion in distressed development properties tallied by Real Capital Analytics.
To some extent, a combination of experience and anecdotal observation can help owners, investors and their consultants sort out retail property values during a turbulent and confusing time. Conventional wisdom has sprung up around the relative worth of various retail categories. Of all the sector's niches, grocery-anchored centers continue to win the highest marks for value because they provide consumer necessities. "Grocers have been through the grinder in competing against Wal-Mart, and the survivors are doing a good job of it," noted Alan Billingsley, managing director & head of research for RREEF, the Deutsche Bank affiliate specializing in alternative investments.
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Posted by: Mark Alferman