Retail shopping centers have remained profitable and shown strong even with challenges such as the roll out of e-commerce in 2010 and the COVID-19 Pandemic. In today’s market, occupancy rates and rental growth has reached record highs. These brick-and-mortar locations have proven to be valuable storefronts due to the fact that you can talk to a customer service representative in person and pickup things quickly and seamlessly. “Year-to-date through November 2022, data firm MSCI Real Assets recorded $77.4 billion in investment sales involving retail properties in the U.S., a 14 percent increase compared to the year before.”
Occupancy levels have remained very strong in these strip centers as well. During the early 2000’s there was about 40 million sq. ft. of new strip centers being constructed per year vs. 8-10 million sq. ft. of new construction today. Retail space is in such high demand in some parts of the U.S. it is becoming hard to find space, and if a retailer wants new space, they are looking to pay premiums. Overall, investors are bullish on these assets and are willing to purchase retail strip centers at a very high rate. We will continue to see this sector remain strong as we continue on into 2023.
To read more, click the link below:
Shopping Centers Looking More and More Attractive to CRE Investors | Wealth Management
About The Author: Jeff Dervech
Jeff Dervech is a Tampa local commercial real estate agent, specializing in the arena of retail strip center and shopping centers.
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