JLL: Retail Investment Sales Are Heating Up

Caldwell: “In the mall sector we are likely to see more ‘B’ assets coming to market in the first half of 2017.”

NEW YORK CITY—As retailers ready themselves for the holiday season—for which many speakers at the International Council of Shopping Centers’ National Deal Making conference here earlier this week forecast a strong outcome—a new report says the sector’s investment sales market may be heating up.

Retail investment sale volumes totaled $50.8 billion through Q3 2016, driven by an increase in large, high-quality retail transactions, according to JLL’s Q3 2016 Investment Outlook, released at ICSC here. Transactions in excess of $100 million accounted for more than two-thirds of deal flow in Q3 and average cap rates have fallen by 41 basis points and sit at 4.5%, an indication of oncoming positive performance.