While tenant mix is changing in many retail developments, the interest from investors remains on brands that are winning market share and adjusting well to omnichannel retailing. Off-price retailers continue to thrive post-recession, as well as warehouse clubs and strong anchor tenants that have developed successful e-commerce strategies.
Urban: High Streets and less traditional cool streets are doing well right now, with emerging retail districts—those that attract clicks to bricks retailers and new concepts—standing out.
Power Center: The success of off-price retailers is generating interest in power centers that have the space to anchor them. While e-commerce has threatened some big box retailers, others are finally perfecting their logistics strategies in ways that allow them to make the most of their last-mile real estate.
Unanchored Strip: While not typically in play for institutional investors, unanchored strip centers are a category with a lot of opportunity in the market.
Large US coastal cities—including New York, Los Angeles, San Francisco, Boston and Washington, DC — remain prime markets for international investment. Americas investors continue to favour the top 15-25 US markets in terms of job and population growth.
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