Retail Forecast: Upbeat But Vulnerable

PALO ALTO, CA-The climate for retail real estate in 2012 looks surprisingly sunny, amid rising consumer confidence and growing appetite among lenders for refinancing and investment deals, according to experts in a Marcus & Millichap retail forecast webinar on Wednesday.

Part of the enthusiasm comes from the anticipation of an undervalued market practically begging for investors. The post-recessionary recoveries in 1992, 1998, and 2002 signaled buying opportunities and 2012 will be no exception, according to William E. Hughes, managing director of the firm’s capital markets unit. In his 25 years following retail real estate, he says, “this is most significant buying opportunity I have seen.”