IRVINE, CA—It's no secret that retail is the next big investment product type. Companies throughout the country are actively seeking retail properties in an effort to ensure they are part of the next investment upswing.
However, with high competition and little product available, finding the right retail investment is becoming increasingly difficult.
As a full service real estate solutions company with properties throughout the U.S., Passco Companies' 15 years of experience helps us to understand what makes a good retail investment in this newest cycle.
| #1: Know Your Market Passco is seeking retail investment properties in the Western U.S. This portion of the country is demonstrating the most growth, and it is a region in which we are an expert. #2: Identify Your Focus Passco is investing in two distinct retail product types: stabilized multi-tenant pads that are outparcels or shadowed anchored, and value-add grocery-anchored shopping centers. We are seeking centers that will accommodate service-oriented, internet-resistant retailers such as nail salons, dry cleaners, medical, and quick-serve restaurants. #3: Consider Opportunities Because of the increased competition in the marketplace, both value-add assets and quality multi-tenant outparcels can be difficult to find today. To remain competitive in the marketplace, it's essential to look at opportunities that may be overlooked. While most investors remain focused on primary markets, Passco will consider retail investment product in smaller MSAs. Retail is a local business, and the value of a retail investment relies heavily on its position within its local community. The fact is, every city or town has a shopping center that serves as the main shopping hub. Passco is looking at these opportunities, and continues to acquire retail product in major, secondary and tertiary locations. |
As retail product continues to become a top investment type for real estate companies, investors will need to heed these lessons in order to find those profitable diamonds in the rough. Passco Companies will continue to rely on our retail expertise to identify properties in all markets that can be profitable.
Todd Siegel is Vice President Retail for Passco Companies LLC. Contact him at [email protected]. The views expressed are his own.
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