DealQwest Retail Investment Trends - 2017 Recap

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Posted on February 13, 2018
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By Kane Morris-Webster, CCIM & Cynthia Shelton, CCIM, CRE

Today’s political environment has been extremely volatile while at the same time the retail real estate market is showing signs of staying on course. The velocity of deals sold has decreases slightly in the state of Florida for retail Properties 30,000 square feet and up,   2017 was down 9.4% from 2016 .

  1. Publix purchasing their own shopping centers was down over 50%
  2. Grocery Anchored Price/SF was up 7% while Publix stores Price/SF fell 2.5%.
  3. The first two quarters again carried the year with 135 sales; last two quarters had 115 sales.

Florida remains a growth state for employment, #3 behind Texas and California. All economic indicators show no recession in sight. Consumer confidence & spending remains high and equity in homes has increased again to one of the highest in history with over $14 Trillion in Equity. Small Business owners are optimistic and are hiring currently and looking to expand locations due to new tax reform.

With all this said we are currently in the 103 month of this expansion period close to the longest one which was 120 months back in 91-01. With that said, we believe we are close to the peak in this market. Which continues to create a great environment for Sellers. CAP Rates have continued to stay compressed and create aggressive pricing on properties.

Another trend we are seeing is are large portfolio sales or company mergers. This helps the big REITs create the transaction volume necessary for their portfolios. Regency purchased Equity One. Madison International picked up a portfolio from DDR along with Slate Retail REIT from Blackstone/DDR owned properties.

FL_RCA_Snapshot-2017-16

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