Retail Investment Trends
Mark Bratt, Will Pike and Melina Cordero look at what’s happening in the Capital Markets and what’s likely to occur in the near future.
As the retail landscape adapts to omnichannel, the investment opportunities in the sector are adapting in turn. With bricks and mortar retail decidedly not dead, there continues to be opportunity in the disruption.
Desirable Tenants
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.
Desirable Categories
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.
Geography
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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