Opportunity Remains, Though Today's Retail Buyers are Less Risk-Tolerant

Phil Voorhees, executive vice president at CBRE, believes the West’s retail investment market is performing well following a slowdown that culminated with the 2016 holiday season.

Though investors may not be on a buying spree at the moment, many are focused on asset preservation. Acquisition opportunities remain in secondary and tertiary markets, along with non-core properties that are lacking a grocery anchor.

There is some trepidation from buyers that we are long into this real estate cycle, but deals are still getting done and lenders are still willing to lend. Financing is most readily available with a 65 percent or 70 percent loan-to-value. Investors who are able to put more money down are finding the most favorable terms from lenders looking to mitigate their own risk. The large spread between cap rates and the 10-Year Treasury has also created positive leverage and buying opportunities for some.

Click the video to hear more from Voorhees on the opportunities in the retail environment out West through the rest of 2018.

 

This video was created as part of the Retail Insight newsletter by Shopping Center Business, a brief newsletter series leading up to the 2018 ICSC Western States conference and including post-conference coverage. The videos in the publication are created in conjunction with our content partners, which sponsor the newsletter. Click  here to subscribe and see archived newsletters.

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