CHICAGO, LAS VEGAS—As investors gather at this week's International Council of Shopping Centers conference in Las Vegas, Chicago-based JLL says a tightened supply pipeline is pushing many to venture into riskier territory and expand their definition of what constitutes “core.”
Buyers have certainly become more active. Retail transaction volumes in the first quarter of 2015 notched up 10.5% from the same period last year, to $22.2 billion, according to JLL retail research. And JLL predicts that in 2015 retail investment trades will rise 15% over 2014 levels.
“Retail transactions have summited to new heights following the extreme lows post-recession,” says Kris Cooper, an Atlanta-based managing director at JLL. “In 2015, we're optimistic for a strong but steady year with a 15% uptick in trades. We're seeing investors buy at higher premiums and venture into different markets in the pursuit of yield. Retail investors' acquisition strategies are being driven by limited supply and high demand. It's that simple.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
