Washington, DC's Retail Sector Attracts Private Capital, Top Brands

According to Andrew Fallon, the scarcity of supply when it comes to both new constructions and legacy assets, combined with the region's favorable market fundamentals and the long-term intrinsic value of real estate, has led to a prevailing trend among investors who choose to hold properties for extended periods.

LAS VEGAS—“In a core market such as Washington, DC, and its surrounding sub-markets, demand is not just strong, but reaching unprecedented levels,” explained Andrew Fallon, executive managing director of SRS national net lease group and market leader in Washington, DC, when talking about retail trends. Fallon’s insights came during an interview with GlobeSt.com surrounding the ICSC Las Vegas event here in Las Vegas.

Unveiling the underlying allure of the region, Fallon emphasized the scarcity of supply when it comes to both new constructions and legacy assets. This scarcity, combined with the region’s favorable market fundamentals and the long-term intrinsic value of real estate, has led to a prevailing trend among investors who choose to hold properties for extended periods.

“They (investors) do so because they recognize the market’s potential for growth, given its burgeoning population and increasing wages,” Fallon explained. “In a market where these factors align, rents tend to rise, and real estate appreciates. Operating in such an environment, even during challenging times, proves to be highly advantageous.”

Discussing the investment strategies employed in uncertain times, Fallon expounded on the concept of flight to quality. Core markets such as New York, Florida, and Washington, DC, attract their attention, thanks to their stability and potential for growth, bolstered by the presence of the federal government.

In addition, he says, assets boasting top-tier credit tenants and robust fundamentals continue to be highly sought-after, whether by all-cash buyers or those willing to navigate the web of today’s interest rate environment. Investment grade credit net lease assets, with their long lease durations and exceptional real estate fundamentals, take center stage. Among the operators that garner private capital and symbolize flight to quality are brands like Chick-fil-A, McDonald’s, CVS, 7-Eleven, Wawa, and Dollar General, he says.

Washington, DC, he adds, stands not only as a core market but a thriving ecosystem where dreams of enduring prosperity can be realized. Investors flock to this region, drawn by its alluring blend of stability, growth potential, and remarkable real estate fundamentals. With the best credit tenants and top-performing operators spearheading the charge, the allure of Washington, DC’s real estate market shines brighter than ever before, capturing the attention and igniting the passion of those seeking long-term success in the ever-evolving landscape of property investment.

Stay tuned for more coverage of the ICSC Las Vegas event from GlobeSt.com, including exclusive insights from attendees. Also, check out the related stories already posted below:

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