Category: Commercial

The Net Lease Retail Market Is Showing a Shift, with Higher Cap Rates and More Listings

Cap rates for net lease retail properties have finally pushed upward.

The average retail cap rate for net lease properties during the second quarter of 2018 reached 6.2 percent, an increase of 10 basis points from first quarter, according to Second Quarter National Net Lease Report from the Boulder Group, a national net lease commercial real estate firm. The last time the rate increased that much was in the second quarter of 2011.

In addition, the Boulder Group reports that the number of retail properties listed has increased, as sellers look to sell assets before cap rates increase further. The number rose by more than 13.6 percent, to 4,216 properties nationally.

Investment sales volume in the single-tenant retail category was just shy of $3.2 billion in the first quarter of 2018, according to the Stan Johnson Co., a brokerage firm specializing in the single-tenant net lease sector. (The firm’s second quarter report is due out later this month.)

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.

Richard is our resident social media expert. He researches and writes about; the economy, marketing trends and all aspects of real estate investing.

Mall Tenants Had an Out When Giants Like Macy’s Left. Now Landlords Bar the Door

The only thing more dangerous for America’s malls than a string of apparel-chain bankruptcies is when the trouble hits department stores.

Retailers like J.C. Penney Co. and Macy’s Inc. are considered “anchors” that keep malls humming and foot traffic flowing. They’re so important to the ecosystem that smaller tenants may refuse to set up shop without a promise that the anchors will stick around: Many leases include so-called co-tenancy clauses that let them cut and run or pay less if those key tenants depart.

Now, many landlords are pushing to eliminate or narrow the escape clauses in the wake of mass department-store closings. That means less flexibility for the remaining tenants.

“Most retailers based in a mall do live or die based on an anchor,” said Andy Graiser, co-president of A&G Realty Partners, a commercial real-estate adviser. “Certain retailers are going to have a risk if certain anchors go away.”

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.

Richard is our resident social media expert. He researches and writes about; the economy, marketing trends and all aspects of real estate investing.

How Mixed-Use Design Is Stealing the Show

As more renters seek communities with that live-work-play feel, mixed-use is offering investors and developers a chance to showcase their new apartments while adding to the economic growth of the neighborhood. Founded in 2004, The Domain Cos. has been a major player in the mixed-use sector, amassing more than $1 billion in development and providing sustainable units for mixed-income residents across markets from New York City to Louisiana. Multi-Housing News spoke with principal Matthew Schwartz about the firm’s expanding geographic portfolio, the appeal of mixed-use and what the future holds for the company.

What is your approach to development?

Schwartz: The first step is identifying communities where we see opportunity to invest and grow over time. We are looking to identify indicators of growth potential that may have been overlooked by the market. With each individual project, we look to develop a best-in-class asset, whether that’s in special-needs housing or high-end hospitality. Further, we want to know that we can operate that asset to maintain that position. As a result, we are constantly looking to innovate and identify opportunities to create a meaningful leap in value with our products and operations. Our projects typically include elements like brownfields, historic structures, complex entitlements or other opportunities to add or unlock additional value. Finally, we are looking to create communities that are sustainable and grow in value over time. This means finding the right mix of housing, retail and services to make a community thrive. These elements often require complex financing strategies or multi-layered public-private partnerships that create opportunities for added value.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.

Richard is our resident social media expert. He researches and writes about; the economy, marketing trends and all aspects of real estate investing.

Commercial Real Estate Deal Volume Up, But Headwinds Are Blowing

(Bloomberg)—The value of U.S. commercial-property deals rose 6.7 percent in the first quarter from a year earlier, but higher interest rates and softer demand for office and retail real estate will weigh on the market in quarters to come, Ten-X Commercial said.

“Heavy supply is looming in the apartment, hotel and industrial sectors, while technological innovation is crimping demand for both office and retail space,” the real estate transaction platform said in a report that looks at data going back more than a decade. Volume for the quarter, which reached $107 billion, was down 14 percent from the previous three months — though companies often rush to close deals before year-end, making for a big fourth period.

Click Here For The Full Article

SUBSCRIBE TO OUR NEWSLETTER

Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.

Richard is our resident social media expert. He researches and writes about; the economy, marketing trends and all aspects of real estate investing.

Scroll to top