NEW YORK, NY—There is no shortage of capital chasing retail real estate heading into 2017, according to Cushman & Wakefield's Metropolitan Area Capital Markets Group. At the same time, limited product coming online for sale continues to dampen transactional volume.
“We are still seeing a lot of interest in the retail sector, but investors are having trouble finding quality product in the market,” says Brian Whitmer, retail practice lead of the Metropolitan Area Capital Markets Group. “They have been increasingly more selective, targeting core markets, urban street retail and grocery-anchored shopping centers with strong credit. Yet most of the product coming online is located in secondary or tertiary assets, or non-core locations.”
For context, Whitmer's group has tracked a 38 percent drop in total retail real estate sales volume in the tristate market year-over-year, with $1.9 billion in trades through mid-December 2016. The number of transactions is down 28 percent, to a total of 86 sales. Grocery-anchored properties in Northern New Jersey accounted for 86 percent of total transactions.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
