State of the Retail Real Estate Market
You know that feeling when you’re so energized you can’t wait to share the news? This describes the excitement and eagerness buzzing through Broad Reach right now.
A half dozen of us recently returned from Las Vegas, where we participated in the commercial real-estate industry’s largest conference. Known as RECon, sponsored by the International Council of Shopping Centers, the three-day conference this year was the largest ever – with almost 40,000 professionals in attendance!!
Here’s our report from the ground:
1. Investment Sales Outlook
If you get all your information from the media, you’d think retail is dying or even dead – this is wildly untrue! However, perception often affects reality, so a number of larger institutional groups are being forced to sell assets in order to raise capital. For you and me, this chain of events presents major opportunities to acquire new properties!
2. Shopping Centers
Based on several national brokerage companies’ recent research data (which mirrors what we are seeing in our own portfolio) overall vacancies in grocery-anchored shopping centers are at historic lows, and rental rates are starting to be pushed up. Since this is the area that BRRP focuses in, this is very positive for our current and future portfolio!
3. Mom and Pops
Some of the most promising ideas and strategies today are coming from local mom-and-pop shops. These folks have mastered the art of staying relevant in changing times. In fact, many are now going through the franchising process.
4. Grocery
Grocery stores are expanding in two ways. First, they’re still building traditional Big Boxes. Second, they’re now developing smaller stores, full of organic foods and generic brands, which take advantage of junior boxes left vacant by a recent wave of bankruptcies.
In scheduled meetings, chance encounters, and in virtually every ad-hoc conversation during the ICSC conference, one thing became very clear: Retail today is strong! And confidence in the economy’s growth remains robust.
Nobody knows this better than Broad Reach, which recently launched a brokerage division. As a result, we can now tackle basically anything relating to retail-based real estate.
For your convenience, here’s a list of our services:
- Landlord Representation
- Tenant Representation
- Property Management
- Property Development
- Construction Management
- Asset Management
Don’t hesitate to let me know if you have any questions. Can’t wait to hear from you!