As Rates Rise, Shopping Centers Look More Attractive to Investors

By Buck Wargo at wealthmanagement.com

Neighborhood shopping centers and power centers have made quite the rebound from the early days of the COVID pandemic and analysts remain bullish on the previously out-of-favor sector for investor interest in 2023 and beyond.

Consumers, aided by the federal stimulus money, boosted retail sales in 2021 and 2022. And with very limited new construction in retail over the last decade, neighborhood shopping centers, power center, and strip centers have become more of a darling for investors, analysts say.

“The big picture is asset level fundamentals are the best that anyone can remember,” says Chris Decoufle who leads the retail capital markets team at real estate services firm CBRE. “When I reflect on my career of 30 years, I have never seen the quality of the fundamentals as they sit today—leasing, velocity, occupancy, and rental rates.”

For the full article, please visit https://www.wealthmanagement.com/retail/interest-rates-rise-shopping-centers-look-more-attractive-investors.