Los Angeles

There is still plenty of opportunity in the retail market, but there is also higher risk. To hedge against the downside, retail investors are carefully analyzing potential opportunities, reviewing a specific set of predetermined criteria before making any purchases. This has become the norm for retail investors in today's unique market.

"Consumer confidence, job growth and the stock market are all doing well, and interest rates remain low for the foreseeable future," Carlos Lopez, EVP at Hanley Investment Group, tells GlobeSt.com. "However, if one were to look at these aforementioned four economic indicators, one might think there would be a high velocity of retail transactions but that is just not the case. Buyers, investors and lenders involved in the retail sector are more carefully examining the real estate fundamentals."

The investment retail checklist starts with an analysis of the location, including corner location, traffic counts, demographics, proximity to transit, nearby amenities and co-tenants. Next, investors will determine future rent growth, tenant sales performance and tenant stability. "If the property has all of these real estate fundamentals—if all the boxes are checked—you have good real estate," says Lopez.