Asia Pacific retail persists with uncertainty but opportunities exist

Although capital value growth in the Asia Pacific office and logistics sectors has far outpaced rental growth over the past 10 years, the gap in the retail sector has been significantly smaller, reported CBRE. This has been translated into relatively mild yield compression for Asian retail assets compared to other property asset classes, with yields hovering at around 3.6 percent–3.7 percent over the past three years.

Ever-present competition from e-commerce and the necessity for investors to have asset-level operational experience to conduct detailed due diligence on potential retail acquisitions add further layers of complexity to retail investing. However, CBRE believes the sector offers attractive opportunities at present, especially in the value-added space.

To read CBRE’s report, click here.