Even though the retail sector continues to strengthen, lenders don’t find retail properties as attractive as they find multifamily and industrial assets. With the exception of grocery-anchored centers and fortress malls, lenders are cautious when it comes to retail real estate, experts say.
Private equity firm Sycamore Partners plans to acquire department store chain Belk Inc. for $3 billion. Charlotte, N.C.-based Belk, which is the nation’s largest family-owned-and-operated department store chain, with close to 300 stores in 16 southern states, posted annual sales of $4.11 billion in for fiscal year 2015.
American consumers are finally spending again, which is good news for retailers and retail property owners. The increased spending corresponds to improved consumer confidence, and experts expect that trend to continue.
Investor demand for net-lease quick-service restaurant (QSR) properties is hotter than an order of McDonald’s French fries. The price point, coupled with long-term leases, rental escalations and recognizable brand names, makes these QSR properties an attractive investment, particularly for 1031 exchange investors.
Personal luxury goods—the “core of the core” of luxury—continue to buoy the market, according to global consulting firm Bain & Co. Yet that growth is slowing: in 2013, luxury goods grew 7 percent, and in 2014, growth slowed to 5 percent at constant exchange rates.