There is now no shortage of voices claiming private real estate fund values have bottomed across the board. But not all properties are equal in this regard.

Persistently low property yields below borrowing costs signal that the values of popular property types such as warehouses, apartments and storage facilities need to fall further. We have rarely seen negative leverage scenarios with happy endings.

There is one type of property that has, in fact, bottomed: open-air, necessity-driven shopping centers.

Strong demand is colliding with extremely low supply growth, resulting in high occupancy rates and strong rent growth for open-air shopping centers. At the same time, the most adaptable and well-managed retailers, such as Walmart and Target, are thriving today. Grocery stores, the largest component of brick-and-mortar retail, have proven to be resistant to warehouse distribution.

We are now undergoing a retail renaissance, presenting a major opportunity fo