Publications

- July 1, 2018: Vol. 30, Number 7

To read this full article you need to be subscribed to Institutional Real Estate Americas

Retail investment sales activity falls in start of year

by Andrea Zander

Retail transaction volumes were $12.8 billion in the first four months of 2018, according to JLL, reflecting a 46 percent decline in investment into retail assets in the first part of the year. JLL attributed the drop to investor caution and a perception retail returns are not commensurate with current valuations.

“Many investors are either allocating their capital into other property types, to debt versus equity, or taking a temporary pause,” said Naveen Jaggi, president of retail advisory services at JLL, in a statement. “We’re pragmatically optimistic of today’s market and are seeing investors begin to rebuild their confidence in the sector as fundamentals strengthen. Vacancy is stabilized at under 5 percent nationwide, and rents have reached pre-recession levels.”

Although fundamentals are improving, investors were slow to close transactions at the start of 2018, and there is a large amount of capital looking to be deployed into retail.

“Seller

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy