While it’s true that class-C and class-D malls are likely to eventually disappear from the scene, or be redeveloped into something else, good quality regional malls currently represent one of the most attractive investments in the commercial property market.
Our rankings were based on a number of metrics, including average vacancy rates for medical office properties, rents per sq. ft., building sales volumes, prices per sq. ft. and volume of recent space completions.
With his latest divestiture, the sale of Pershing Square’s remaining 28 million shares of General Growth Properties back to the regional mall REIT for $556 million, it looks like Bill Ackman may be completely done with anything having to do with retail.
It’s becoming more and more common to see Whole Foods or another strong grocery chain occupying the ground levels of multi-unit residential developments, especially in urban markets like San Francisco and Washington, D.C.
What a difference a few years make. As recently as 2012, one of the things that kept commercial real estate professionals up at night was the huge volume of CMBS maturities that were coming up starting in 2015.
The decline in REIT returns has been particularly noticeable because in 2013, the S&P 500 index delivered total returns of 32.4 percent, according to a Wall Street Journal story from Jan. 7. The gap between the S&P 500 returns and REIT returns turned out to be the largest since 1998.
As part of the transaction, Hudson’s Bay will be able to lease back the space for 25 years, with extension options totaling 50 additional years. This will allow the company to bring a 150,000-sq.-ft. Saks Fifth Avenue store to share its downtown Hudson’s Bay location.