Eventually, a lot of distressed non-grocery anchored shopping centers will start hitting the market.
But the buyers of these centers may not keep them in one piece for long. Instead, in an effort to pay down the debt or execute other strategies, they could sell off the out parcels, according to Jonathan Hipp, principal, U.S. Capital Markets and head of U.S. Net Lease Group at Avison Young.
"That's a strategy that I think will gain a lot of momentum as some loans start to go to the special servicers and people buy them at a discount," Hipp says. "One of the strategies will be to try to peel off some of the PADS and pay down the debt. Or existing owners may peel off some of the PADS as opposed to selling the whole center."
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
