2022 was a "tail of two halves" for the grocery-anchored retail sector, which began the year with red-hot momentum from record transaction volume in 2021 and the tremendous cap-rate compression of cheap debt.
An average monthly transaction velocity of $1.5B for grocery-anchored retail assets in H1 2022 reflected this Big Mo.
However, the track record for H2 2022 reflected the impact of the Fed's campaign to raise the cost of debt: the monthly transaction activity average was nearly sliced in half, to $852M, as cap rates surged to current levels of more than 7%.
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