Pricing has actually gotten more competitive for essential use retail properties. Properties that are both considered an essential use and are internet resistant have been especially popular among investors looking to place capital. This includes tenants like veterinary hospitals, pharmacies and grocery stores, all of which have performed well during the pandemic. Non-essential use properties have been taken off of the market while businesses remain closed, helping to prop up overall pricing and cap rates.

“COVID-19 has exaggerated both spectrums of the market. If you have a grocery store right now that does delivery, it is worth even more than it was pre-COVID,” Matthew Mousavi, managing principal with SRS’ national net lease group, tells “Because buyers have limited alternatives, they need a place to put their money. Properties that are COVID-resistant, ecommerce-resistant and in a great location are selling at lower cap rates than before the recession. There are deals that have gotten more attractive due to COVID. In many ways, it is all a buyer can buy now. Buyers certainly want higher cap rates. That is just the market.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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