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Sales Up, CAP’s Down September 22, 2010

Posted by Sean Tufts in Articles, Research/Data, Retail News.
Tags: , , , , , ,

Obvious pain remains in the retail investment market but it is clear that activity is picking up.  The Puget Sound was late to the recession and will be late to the turnaround but there is little doubt that the bottom has been reached.  We have received multiple offers on our strip center listings since Labor Day and have seen buyers become more aggressive than they have been in the past two years.  This is happening across the nation as CAP rates continue to settle around historical averages.  Retail Traffic’s latest article contains the graph below

There are some pretty decent deals on the market and those that are waiting for a wave of distressed deals are likely going to find themselves waiting for something that never shows up, especially in the Puget Sound.

“(T)he long-predicted tsunami of distress will likely never materialize, but there will be a continuous trickle of distress assets being put on the market as banks’ profits improve and they find themselves able to absorb the losses.”

Leasing activity is definitely picking up as well.  The Seattle Times reported this morning that The Landing in Renton announced 6 new leases this week.  That is some much needed good news for retail owners!

Full Retail Traffic article here.



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