The Fed raising key interest rates several times in 2022 and signaling potentially more hikes on the horizon has meant a shake-up in capital markets. For retail, it's added some uncertainty to what was a red-hot market. El Warner, Colliers' vice chair of Retail Capital Markets, believes that those rates hikes will start to flatten once inflation reaches a 4% nominal rate but explains that pricing is the real question. "We look at supply and demand," he says. "Overall, we're seeing that pricing is moving, and will move, but not as drastically as people may perceive it to, because demand is still relatively strong."
Colliers' EVP Brad Peterson notes, "Retail offers the best risk-adjusted returns right now."
They spoke alongside Colliers' Anjee Solanki, national director of Retail Services & Practice Groups, on the state of retail investment in a rising interest-rate environment at the ICSC NY 2022 event
In this video, you'll learn:
- What the current environment means for buyers and sellers.
- Which property types are over- and underperforming.
- What is commanding most of the trio's attention at the moment.
Click play to watch.
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