TAMPA, FL—Activity in Tampa’s retail investment market is reaching a sustainable pace as lenders are now willing to fund loans for most product types and buyers are becoming more tolerant of risk. So says the most recent RetailResearch report from Marcus & Millichap.

The firm reports that the single-tenant arena is moving away from its bifurcated status over the past two years, when mostly properties with corporate leases and vacant owner-user assets changed hands. As cap rates compress into the 6% range for drugstores, M&M predicts, buyer will acquire franchise-occupied properties to met return objectives. Initial yields will start in the low-8% range.

M&M also predicts that multi-tenant investors will enjoy greater access to acquisition financing this year, which will create more buying opportunities. Buyers are still favoring class A assets, the firm reports, which trade at cap rates in the high-7% to low-8% range, with lesser-quality properties starting in the mid-9% area.