Investment in the retail sector reached $21.2 billion during the second half of 2024, an increase of 36% from the first half of the year. This boosted total retail investment volume by 6% year-over-year to $36.8 billion, according to JLL’s Q4 retail market dynamics report.
But the surge may not stop there, as the broker predicted that the sector could experience an even bigger year in 2025.
The significant increase in retail investment activity last year was fueled by interest rate cuts and positive sector headwinds, including historically low new supply growth and vacancy rates, according to the report. An influx of capital formation for retail, acquisition opportunities below replacement costs in most major markets and premium valuations for portfolios due to challenges in large-scale investments are likely to propel continued growth in retail investment volume. Prime opportunities include convenience and luxury spaces via grocery-anchored and unanchored centers as well as urban retail in prime and emerging corridors, said the report.
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