Bisnow’s Post

Our only retail regret is we did not buy more retail 2-3 years ago. Fresh off a successful shopping center exit last month, we continue to look for sunbelt located retail to add to our portfolio. An excerpt from the attached article: “At the time, investors avoided retail property and instead reallocated funds to what were perceived as more stable and profitable segments, such as industrial and multifamily properties. Fast forward to today, and the narrative has dramatically shifted. Retail property has reemerged as a favored asset class, bolstered by strong demand from tenants, especially service providers, and very little new construction keeping retail space options limited.”

As we move into 2025, here are my thoughts on the net-lease multi-tenant retail assets. Multi-tenant retail pads leased to national and regional tenants, positioned within well-located anchored shopping centers, continue to see consistent demand from buyers in today's market. While the supply of single-tenant properties has increased, the supply of multi-tenant pads to anchored properties has remained low. As market conditions have changed, theses types of investments provide investors with a higher return alternative and a secure and diversified income stream compared to the single-tenant net-lease assets. Institutional investors have broadened their focus beyond acquiring centers where the grocery store is a part of the offering, to now include shadow and unanchored strip centers as part of their investment criteria. This is driven by the lack of inventory of core grocery-anchored centers, the recognition that a high-traffic intersection is the main driver of a center's success, and the appeal of higher rent growth in shop leases compared to typically flat rents of grocery store leases. Franzen 🤙 #svn #svnchicago #cre #netleaseretail #multitenantretail

Explore why grocery stores continue to attract shoppers, investors, and developers alike. Their stability and growth potential make them a key asset in the commercial real estate market. Dive into the details here:

For my latest C-Store Dive column, I wrote about some of the fastest-growing, under-the-radar convenience retailers in the U.S. right now. Unlike the Circle Ks and Casey’s of the world, these operators — Nouria, Rutter's, Majors Management, LLC, Parker's Kitchen, H&S Energy Group, The Kent Companies, and CrossAmerica Partners LP — don’t have thousands of stores, so the impact of each acquisition or series of builds is amplified. As 2025 approaches — and as being a small operator becomes harder — expect some of these companies to continue growing bigger and faster than ever before. https://lnkd.in/gQ-C3cBK

Visintainer Group just released the 2024 Quarter 1 Investment Market Report for Multi-Tenant Retail in California's #CentralValley. Multi-tenant retail continues the trend of regression in the market, with CAP rates now averaging 6.98%, an increase of 71 bps over the last two years compared to our recent peak in 2022. Sale volume and deal velocity increased from a dismal Q4 to $84.5 million and 17 transactions. Tully Manor Shopping Center, a Raley’s grocery-anchored center in Modesto, was the largest sale of the quarter, selling at $17,925,000 in January and at a 7.20% CAP rate. The lowest CAP rate of the quarter was Porter’s Crossing in Porterville, trading at $7,370,000, $609 PSF, and at 5.82%. The property was built in 2019 and featured multiple national tenants, including Chipotle and Habit Burger. To discuss trends, activity or to review the full report, contact John Kourafas, CCIM or Davis Culy #investmentmarketreport #quarterlyreport #centralvalleyinvestments #commercialinvestment #marketupdate #VisintainerGroup #MultitenantRetail

The developer of Clearfork is moving forward with a 100-acre retail hub in west Fort Worth that will include a grocery store and "significant retail." https://lnkd.in/gAYzdW8Q

Lots of conversations about store closings going up, but more good news about spaces being filled quickly reported by Kate King at the #WSJ. #Retail #realestate inventory remains low in high demand locations and markets. Data also shows the US retailers tracking for more store openings than closings as the year progresses. What markets will be heating up next? #retailtransformation #markets #saturation #cre #data Scott Cianciulli Coresight Research Alvarez & Marsal Property Solutions

What's next... While there’s been plenty of talk of H-E-B growth in the popular DFW metroplex, the Texas-based grocer is also making major strides in Austin with plans to build new stores and renovate existing locations: https://ow.ly/YXNJ50UjrCp #HEB #foodretail #grocey

Leekes profits top £1.2m Improved margins and operational efficiencies saw retail profits at Leekes top £1.2m in the past year. The six store chain said the market had been ‘significantly affected by lower consumer demand for high value home purchases’ bu interest rates and inflation but it had ben able to lift gross margins by 270bp to 42.6%. EBITDA was stated as £2.8m with pre-tax and exceptional items profits of £1.2m in the year to 31 March. The group has yet to file its audited accounts for the period. ‘We are delighted to report continued strong results despite the well-publicised challenges faced in the retail sector. Our excellent profitability over the past four years has enabled us to continue our programme of investing in significant capital expenditure in our retail business. We are excited by the successful opening of our newest store in Cheltenham last week and the imminent start of the final phase of the refurbishment of our flagship store in Llantrisant, South Wales,’ says Emma Leeke, Leekes Retail md. The enlarged group, which includes the Vale Resort at Hensol, South Wales and its Hensol Castle distillery reported EBITDA of £6m and a profit before tax and exceptional items of £3.1m for the year. https://lnkd.in/e8Mi45Fm #furniture #furnitureindustry #retail #retailindustry

NEW LISTING: Rare opportunity to acquire the fee simple interest (land & building) in a 29,358 SF retail center in the heart of one of Tipton’s County’s premier retail developments, Covington Commons, in Covington, TN. Located between two dominant retailers Walmart Supercenter and Home Depot. This is the only Home Depot & Walmart Supercenter combination within a 30-mile radius & conveniently accessible to over 70,000 plus people, which derives high volume consumer cross-over with increased traffic & exposure. NNN leases with rental increases create long-term upside as they allow the investor to pass-thru the expenses to the tenants. T Priced at only $214 PSF, the subject property is below replacement cost. Clik the link to learn more about the listing: https://lnkd.in/gGxkSg8b #CommercialRealEstate #InvestmentOpportunity #RetailCenter #CovingtonTN #NNNLeases #InvestWisely