Tuesday, May 21, 2013

Commercial real estate law firm Hartman Simons says “blistering” investment sales set to grow stronger

Avalon, $600 million mixed-use project rendering, Alpharetta, GA

LAS VEGAS (May 20, 2013) – With many major chains opening new stores and investors showing strong interest in retail properties, the retail real estate sector is set to continue its recovery in the second half of 2013.

Bob Simmons
That’s the take of Hartman Simons, an Atlanta-based national commercial real estate law firm that represents tenants and landlords in retail leases as well as investors in retail properties.

 The firm provided its analysis as the 2013 ICSC RECon convention got underway in Las Vegas. The retail real estate convention runs from May 19 through May 22.

Retail investment sales “have been blistering,” said Bob Simons, a partner with the firm. “Leasing has been picking up too. Our work in those areas is up significantly over last year and dramatically from 2009 and 2010.”

“We are very optimistic about the rest of this year,” Simons added. “I think investment sales could become even more competitive.”

REITs and institutional investors are in hot pursuit of core assets, such as grocery-anchored shopping centers, in major urban markets, and the capitalization rates for the sales of those properties have compressed to 2007 levels, Simons said. 

Meanwhile, individual and pension-fund investors, in search of higher yields than the miniscule returns offered by Treasury bonds, have been gobbling up single-tenant, net-lease retail properties, such as drug stores and banks, across the country, he said.

The sector is experiencing the expansion of several major retailers, Simons said. Sporting-good chains and specialty grocers are among those expanding aggressively, Simons said.

Unfortunately, financing can still be difficult to obtain for smaller retailers. “Mom-and-pop tenants and local retailers are still struggling for access to capital,” Simons said.

Among its high-profile projects, Hartman Simons is involved in the development of Avalon, a $600 million, mixed-use project in suburban Atlanta.

For more information, visit www.hartmansimons.com or call 770-955-3555.

 For a complete copy of the company’s news release, please contact:

Stephen Ursery
The Wilbert Group

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