Change, rather than tolling the death knell for the sector, is exactly what will keep retail alive and vibrant.
It seems that the retail sector can’t catch a break. It was just a few years ago that people—otherwise in the know—were predicting the fall of brick-and-mortar at the hands (or should I say fingers?) of internet shopping.…
Institutions and 5031’s have an appetite for acquisitions, according to one observer. The problem is debt.
Though sales of net lease properties fell in the first quarter, it wasn’t for lack of interest, according to Richard T. Murphy, senior vice president of the US Capital Markets Net Lease Group at Avison Young.
“A lot of the institutions are out there still looking for product,” Murphy says. “A lot of people raised a lot of money. There was a lot of money raised this year to go out and take down a lot of deals. That money’s still out there.”
A creditworthy tenant with a certain degree of correction-resistance in its marketing strategy is a fairly sure bet to hedge against the vagaries of the greater market.
The coronavirus news gets scarier every day as the spread of the disease worsens. Investors have taken notice, and the stock market reflects it. But those of us who have been in the business long enough, know that the long-game is the thing.
If people are shopping differently today, and they are, it is not to the exclusion of brick-and-mortar venues, but rather to those brands that have not been able to think in an omnichannel strategy of bricks-and-clicks working together.
Excuse me while I step outside of my normal role in this space of focusing solely on the net lease market. Because there is a dynamic impacting all of retail—the general market as well as net leased retail—that needs to be addressed, namely, the myth of a retail apocalypse.…
Despite the specter of trade wars and a global economic slowdown, net lease investors bought in Q3 2019, showing confidence in the sector and economy. However, the US economy bears watching, especially in light of another Federal Reserve interest rate cut.
Three months later, the story is different. During the third quarter, cap rates ramped up by 16 bps, from 6.41% to 6.57%.
An increase in cap rates can mean more buyers are in the market, eager to take advantage of lower price points. This is supported by our transactional data, which posted 544 completed deals. Even in the face …
How does the online giant expect to break into one of the busiest sectors for buyers?
As we continue to grow into a digital age, we see more and more retailers developing their online presence to have a wider reach with consumers around the world. This is how Amazon become the shopping behemoth we know today. As a result, different brick-and-mortar stores struggle to create a business plan that addresses Amazon’s competition and eventually fall to the wayside. One sector, however, has not seemed to be taken aback from this competition—the Dollar Store sector.…
To net lease investors, discount dollar stores offer passive cash flow, thanks to long-term leases (averaging 10-15 years) and credit-worthy tenants.
Travel through a small town or the outskirts of a larger city, and you’ll likely pass by the local discount dollar stores. Whether those stores boast the green sign of Dollar Tree, or the yellow-and-black General Dollar signage, they offer aisles of everyday goods, ranging from beauty products, to cleaning essentials, to food, all within a 10,000-square-foot space.
To net lease investors, discount dollar stores offer passive cash flow, thanks to long-term leases (averaging 10-15 years) and credit-worthy tenants. …