At the ICSC LAS VEGAS 2024 conference, Nellie Day of Retail Insight discussed the current investment climate with Shaun Riley, managing principal of Faris Lee Investments. Riley highlights key aspects of the retail environment — discussing interest rates, bid-ask spreads, navigating the market and more.
Investor Sentiment and Market Reactions
Riley explains that investor sentiment is significantly influenced by interest rates. After two decades of low rates, recent hikes have led to a cautious approach among investors.
“A lot of [investors] are waiting out until they see the returns the need. However, there are some investors who are value-add buyers. They feel like in this environment, if presented with the right value-add opportunity — they’ll strike. With those value-add opportunities, especially in certain markets and around the country, a lot of them don’t come around all that often. And we’re starting to see more flexibility, more desirability from the sellers to sell,” Riley says.
Opportunities Amidst Challenges
Despite the cautious sentiment in the market, Riley identifies ongoing opportunities in the retail sector. He emphasizes that retail has avoided the overbuilding seen in other property types and discusses what adaptable retailers are doing to meet today’s challenges.
to learn more about Faris Lee’s approach to rental rates, property values, growth strategies and more.
This video was created as part of the Retail Insight newsletter by Shopping Center Business, a brief newsletter series leading up to the ICSC LAS VEGAS 2024 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.