CORONA DEL MAR, CA—Single-tenant retail assets priced $5 million or less continue to sell with the most velocity due to having the largest audience of prospective investors and all-cash buyers that are less dependent upon financing, Hanley Investment Group EVP Bill Asher tells GlobeSt.com. In addition, he says grocery-anchored shopping centers with reported successful sales and a complementary mix of Internet-resistant retailers will continue to be in high demand and command top-of-the-market pricing.
“In 2017, we saw sellers continue to push the market with aggressive pricing on the marketing and sale of single-tenant retail, especially coming off peak market pricing in 2016 driven by record-low interest rates and investor demand,” says Asher.
He adds that overall activity and buyer interest decreased, with buyers proceeding with more caution in previous years. This created larger spreads between where a property was listed for sale, what range buyers submitted offers and final closing prices. “Watch for brokers to strategize with sellers in more depth in 2018 in properly adjusted pricing to better meet the transitioning market on all retail product types to more efficiently and effectively consummate sales this year.”