Retailers Eye Rising Interest Rates With Concern

Without a doubt, much of the first quarter of 2022 was good for retailers. Retail sales were strong and consumer spending remained solid. The quarter ended with a continuation of the investor demand, pricing and market activity that characterized 2021, Matthew Mousavi, Managing Principal, SRS Real Estate Partners, National Net Lease Group, told GlobeSt.com at the recent ICSC event. “There’s an incredible amount of capital and liquidity in the marketplace and investor appetite is strong, particularly from institutional profiles including funds, DSTs, and REITs, as many have capital allocation requirements and acquire on an all-cash basis,” he said. 

Not all of the quarterly developments were welcome to the industry, however. The Fed’s ratcheting up of the federal funds rates is a source of concern, especially with the guidance now pointing to 50 basis points or more in terms of increase.