Jimmy Slusher, vice president of National Retail Partners – West at CBRE, acknowledges transaction volume is down compared to previous quarters, but this is not a trend he expects will continue.
Slusher witnessed a barrage of activity at ICSC RECon, which supports his prediction that transaction volume will escalate in the second half of 2019. That’s because many investors are eager to deploy capital if they can find good-quality, grocery-anchored shopping centers, which are in demand at the moment.
This level of interest has caused cap rates to continue to compress. An unlimited pool of buyers for the best assets has also spurred movement on the yield front, as the spread between A, B and C assets continues to widen. Some investors are following that gap. They’re searching for deals in B and C markets as core markets remain under-supplied when it comes to grocery-anchored opportunities.
to hear more from Slusher about expectations for the second half of 2019.
This video was created as part of the Retail Insight newsletter by Shopping Center Business, a brief newsletter series leading up to the 2019 ICSC RECon conference and including post-conference video interviews. The videos in the publication are created in conjunction with our content partners, which sponsor the newsletter. Click here to subscribe.