LAS VEGAS—REITs and institutional investors will be assessing where they have exposure in the retail assets they own. Those thoughts are according to Chris Sands, founder of Sands Investment Group.
“They will be pruning the non-core assets in order to maintain a healthy portfolio,” he tells GlobeSt.com.
According to Sands, who recently chatted with GlobeSt.com surrounding last month's ICSC RECon event, developers are going to assess how to factor in with retailers the impact of increases in interest rates. “They will also be looking at the impact of higher cap rates and how that effect their proformas and further impacts the relationship with tenants they are building for.
Market analytics are showing that investment sales are down across the board from previous years.”
What people don't factor, according to Sands, is how aggressively of a seller's market it has been. “The byproduct is that there is a lot of exchange money in the market,” he says. “When that slows the investment criteria changes.”
And when there is a lot of exchange money people are forced to make a deal, even pay more, Sands continues. “However, if that slows because investment sales slowdown, it will have a delayed impact but the outcome will be fewer trade buyers in the market. That eliminates the pressure to pay more because the investors are making more patient investment decisions. Ultimately, this will lead to a temporary disconnect be buyers and seller until the market adjusts.”
And despite the lingering question of the impact of online sales and e-commerce, brick and mortar still has a lot of runway, he explains. “Retail is a great sector for investment opportunities. Daily needs are still a safe bet and a safe investment.”
For other thoughts from experts who attended the ICSC RECon event here in Las Vegas and to learn more about panel coverage from the event, check out the articles below.
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Attract the Retail Store of the Future to Your Community Now
Retail Expert: The Future is the Carful Curation of Space
What Brick and Mortar Retailers Need to Do
Caruso's Key to its Success, What Retailers are Looking for
A Closer Look at Retail Lending, Investment
Retailers Now Have Tremendous Options in “New Submarkets”
Experts at ICSC's RECon Say It's All About Fitness, Beauty, Food and Service
Will Food Halls be Retail's Hottest Growth Story?
Food and Beverage's Role in New Real Estate
Authenticity Is Critical to Food Hall Development
Upclose With Franklin Street at ICSC's RECon 2017
VEREIT Recognizes Top Leasing Brokers at ICSC RECon 2017
A Closer Look at Leasing Financials, Retailers Resiliance
Top of Mind Topics from ICSC's RECon 2017 Conference
DDG Talks Retail Landscape Shift, New Opportunity
Will Negativity in Retail Continue Until Sears Falls?
Is Retail Being Painted With Too Broad a Brush?
How Brick and Mortar Will Leverage Data and Analytics
New Power Couple: How Retailers and Retail Destinations Communicate
LAS VEGAS—REITs and institutional investors will be assessing where they have exposure in the retail assets they own. Those thoughts are according to Chris Sands, founder of Sands Investment Group.
“They will be pruning the non-core assets in order to maintain a healthy portfolio,” he tells GlobeSt.com.
According to Sands, who recently chatted with GlobeSt.com surrounding last month's ICSC RECon event, developers are going to assess how to factor in with retailers the impact of increases in interest rates. “They will also be looking at the impact of higher cap rates and how that effect their proformas and further impacts the relationship with tenants they are building for.
Market analytics are showing that investment sales are down across the board from previous years.”
What people don't factor, according to Sands, is how aggressively of a seller's market it has been. “The byproduct is that there is a lot of exchange money in the market,” he says. “When that slows the investment criteria changes.”
And when there is a lot of exchange money people are forced to make a deal, even pay more, Sands continues. “However, if that slows because investment sales slowdown, it will have a delayed impact but the outcome will be fewer trade buyers in the market. That eliminates the pressure to pay more because the investors are making more patient investment decisions. Ultimately, this will lead to a temporary disconnect be buyers and seller until the market adjusts.”
And despite the lingering question of the impact of online sales and e-commerce, brick and mortar still has a lot of runway, he explains. “Retail is a great sector for investment opportunities. Daily needs are still a safe bet and a safe investment.”
For other thoughts from experts who attended the ICSC RECon event here in Las Vegas and to learn more about panel coverage from the event, check out the articles below.
How Foodie Culture Has Changed the Way Brokers Think
Attract the Retail Store of the Future to Your Community Now
Retail Expert: The Future is the Carful Curation of Space
What Brick and Mortar Retailers Need to Do
Caruso's Key to its Success, What Retailers are Looking for
A Closer Look at Retail Lending, Investment
Retailers Now Have Tremendous Options in “New Submarkets”
Experts at ICSC's RECon Say It's All About Fitness, Beauty, Food and Service
Will Food Halls be Retail's Hottest Growth Story?
Food and Beverage's Role in New Real Estate
Authenticity Is Critical to Food Hall Development
Upclose With Franklin Street at ICSC's RECon 2017
VEREIT Recognizes Top Leasing Brokers at ICSC RECon 2017
A Closer Look at Leasing Financials, Retailers Resiliance
Top of Mind Topics from ICSC's RECon 2017 Conference
DDG Talks Retail Landscape Shift, New Opportunity
Will Negativity in Retail Continue Until Sears Falls?
Is Retail Being Painted With Too Broad a Brush?
How Brick and Mortar Will Leverage Data and Analytics
New Power Couple: How Retailers and Retail Destinations Communicate
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