Institutional capital is flowing back into retail, and the sector is benefiting in a big way. Rising demand, limited new supply, and improving financing conditions are driving a true resurgence.
In a recent feature, Ryan Byrne and John Darrow shared why retail is outperforming other asset classes and drawing investors back.
🔹 Capital Flows Towards Retail
Retail captured 27% of 2024 investment sales and nearly 26% of CMBS issuances.
🔹 Compelling Returns
Cap rates sit roughly 100 basis points above multifamily. With financing in the mid 5 percent range, investors are achieving about 150 basis points of positive leverage.
🔹 Southeast and South Central
Tampa, Miami, Atlanta, and RTP report some of the nation’s lowest vacancy rates as population growth fuels retail demand.
🔹 Retailers Adapt
Gen Z’s shift toward social and experiential uses is driving conversions to pickleball courts, boutique fitness, and entertainment concepts.
Read more at GlobeSt.com.