caught up with Margaret Caldwell, managing director and partner at Stan Johnson Co., to discuss current and emerging trends in the multi-tenant retail sector. Here are excerpts from that conversation.

What trends are you seeing across the multi-tenant retail sector today?

There are a few trends impacting the market right now. First, we're continuing to hear from REITs that parcelization is a trend that's here to stay. By offering shopping centers in a combination of pieces, including the anchor boxes, outparcels, small shop space, as well as listing it in its entirety, we're able to drive better pricing and create more marketing momentum. We're also seeing investors pursue older strip centers. Newer developments often have tenants at above-market rents, but older centers can allow landlords to grow rents as they experience tenant rollover. Additionally, because they are unanchored, landlords can backfill these strip centers more easily while offering fewer concessions. Finally, here in the Southeast, we're seeing a large influx of relocations and capital from the Northeast. This trend isn't new – people have been flocking to the South for a while. COVID-19 has accelerated the shift of populations and capital from dense, urban areas to the suburbs and to high-growth areas like the Southeast. This is a trend we'll most likely continue to see, even in a post-pandemic environment.

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