Search
 

Savvy Investors Flock to Premium Retail Assets

Retail assets are finding attractive yield spreads in retail assets relative to other asset classes, GlobeSt.com reports EXCLUSIVELY.

Savvy real estate investors are flocking to premium retail assets. The evolution of retail had driven investors away from the retail asset class, but attractive pricing and yield spreads are driving investment activity back again. Institutional capital in particular has been finding opportunities in the retail market. This year, activity for class-A, well-located retail assets has increased, and experts expect the momentum to carry through the fourth quarter.

“We’ve seen an increase in investor demand for retail over the last quarter driven by an attractive spread in yields relative to other asset classes,” Tom Lagos, EVP at JLL, tells GlobeSt.com. “Savvy investors who are appropriately underwriting risk are getting a premium for pursuing this asset class. We anticipate more activity in the last quarter of the year along these lines.”

Exemplary of the new trend, an unnamed institutional investor has acquired Towne Center East in Signal Hill from BIG Shopping Centers USA, GlobeSt.com has learned exclusively. The 154,750-square-foot property is a multi-tenant shopping center with national anchor tenants, The Home Depot and PetSmart. The remaining tenant roster includes Supercuts, T-Mobile, Subway, GNC, Chinese Combo, Tutti Frutti Yogurt. “The sale of Towne Center East is another example of the strong demand for quality retail real estate in Southern California,” Lagos says. “The property attracted a spectrum of private and institutional bidders seeking well-located real estate with a risk averse income stream.” Lagos, along with Patrick Toomey, represented the seller in the deal.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author

Recommended Stories

GlobeSt. Net Lease Spring 2025Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. Net Lease Spring 2025Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.