Intelligent Investment
Not Yesterday’s Retail
June 3, 2024 5 Minute Watch
Summary
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Executive Vice President
- Retail Demand Outpacing Supply
The retail market has favored tenants for 30 years but now the edge has shifted to landlords. Retailers continue to grapple with limited space availability. While some retail bankruptcies have occurred, these closures have created opportunities for stronger brands to take over attractive space.
- Knowledge Premium is Key for Retail Investing
For investors, better knowledge of the retail sector allows their investments to outperform. This involves strategic site selection in both primary and secondary markets, and selecting the right product type. Understanding how these factors work together enables better returns with less risk.
- Goldilocks Story in Retail
Strong fundamentals and positive leverage make retail investments attractive for savvy investors. Many other property types face weak fundamentals, challenging pricing and negative leverage.
- What is the Outlook Going Forward?
Retail brands have become more product-agnostic in site selection, putting the consumer at the center of decision-making. Technology will play a pivotal role in both enhancing consumer experience and optimizing inventory management. Additionally, market conditions are expected to continue favoring landlords as little new retail supply is set to come to market.
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