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| Dan Fasulo |
ATLANTA, GA– Although its recent performance has generally
been regarded as trailing the other U.S. commercial real estate sectors, the
retail real estate market continues to show unmistakable signs of improvement,
particularly in urban infill areas.
The most recent
episode of Michael Bull’s “America’s Commercial Real Estate Show” provided an
enlightening update on the sector. Bull and his guests discussed transaction
volume, consumer spending, active tenants and the types of properties sought by
investors.
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| Michael Bull |
Investments sales of
U.S. retail properties totaled $9billion in third-quarter 2012, up slightly
from the same period last year, said Dan Fasulo, managing director of
Real Capital Analytics. Through the first nine months of 2012, retail
investment sales totaled $35 billion, an increase o fabout 5 percent from the
first three quarters of 2011, Fasulo added.
Fasulo also
predicted the fourth quarter to be a busy one in terms of investment sales, in
part because continuing concerns about potential future tax increases will
motivate owners to sell before higher rates might kick in. “I think there’s
going to be a flurry of closings by year end,” he said.
 |
| Michael Niemira |
Meanwhile, holiday
retail sales should increase this year by about 3 percent when compared with
last year, said Michael Niemira, chief economist for the International
Council of Shopping Centers. “That’s a little bit slower [growth] than the year
before but still not a bad performance historically,” he said.
Mixed-use properties
in centrally located urban areas are prospering, while their suburban
counterparts continue to struggle, noted Michael Cohn, executive vice
president for Cousins Properties. “Urban markets are seeing rent escalation,
healthy absorption, a tremendous inflow of new retailers and expansion,” he
said. “If you’re still in it with a mostly suburban portfolio, your portfolio
is probably lagging somewhat and still a bit of a victim of the last cycle.”
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| Michael I. Cohn |
Quick-serve
restaurants and healthcare firms are two of the more active tenants in today’s
marketplace, Cohn added.
REITs and institutional buyers are exhibiting a healthy
appetite for core properties in gateway markets, said John Harrison, a
broker in Bull Realty’s National Retail Group. Private equity firms also have
significant interest in value-add and Class-B properties.
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| John Harrison |
“There is money to
invest in the distressed retail segment, and buyers are courageous and tackling
opportunities that require a lot of imagination,” Harrison said.
The entire “U.S.
Retail Market Update” episode is available for download at www.CREshow.com.
Contact:
Stephen Ursery
Wilbert Public Relations
E-mail: sursery@wnspr.com
Office: (404) 965-5026
Cell: (404) 405-2354
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