The Potential of Overlooked Retail Assets

Overlooked opportunities often lie in plain sight, waiting to be recognized.

LAS VEGAS—A recent panel discussion at ICSC Las Vegas shed light on overlooked prospects and emerging trends in retail, highlighting the potential of enclosed malls, high-quality mall investments, and single-tenant open-air shopping centers.

Bryant “Bo” Okoroji, Founder and Managing Partner of Steerpoint Capital, emphasized the often underestimated potential of enclosed mall spaces. Despite narratives of decline, Okoroji sees these spaces as bright opportunities, citing their diversified tenant base as a significant value proposition. He pointed out the presence of mispriced risk, making such investments appealing.

Echoing Okoroji’s sentiments, Vince Tibone, Managing Director and Head of US Industrial & Mall Research at Green Street, underscored the attractiveness of high-quality malls as investments. Despite concerns stemming from the economic fallout of the pandemic, Tibone noted robust demand levels and a lack of new supply over the past decade, contributing to favorable investment returns. He predicted an increase in high-quality mall trades, with major players like Simon Property Group poised to capitalize on favorable cost-to-capital ratios.

Karly Iacono, Senior Vice President of the Investment Properties Group at CBRE, highlighted the evolving dynamics within single-tenant open-air shopping centers. She noted a shift in demand towards properties with higher risk profiles, particularly those with historical mismanagement and vacancies. Iacono emphasized the importance of addressing potential issues promptly amidst the current market pressures, emphasizing transparency and proactive deal management.

Despite challenges such as the dislocation between buyers and sellers and the pressure to find viable deals, panelists remained optimistic about the potential for strategic investments. As Okoroji noted, overlooked opportunities often lie in plain sight, waiting to be recognized by those who are willing to dive in.

Check out related retail stories below that you might have missed and stay tuned for more trend coverage from other retail experts we spoke with as the ICSC approaches.

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