US retail real estate pricing rebound looks unlikely
Much has been written about the rebound in US retail fundamentals with some real estate commentators suggesting that the strengthening near-term demand outlook for the sector will result in increased investor interest and a recovery in pricing levels, specifically for the wearied mall segment. We believe this argument is overblown.
What you will learn:
- Our current retail forecasts call for market returns that are markedly weaker than pre-Covid performance.
- The flood of capital chasing real estate and driving down yields elsewhere in the property market will likely bypass retail as yields soften over the near term.
- While fundamentals have improved recently, the temporary cyclical recovery will soon wane and the structural headwinds facing the sector will take centre stage once again.
Tags:
Related Services
Post
Long term investors well placed for office upswing in Australia
Australian CBD office property capital values have taken a battering since mid-2022, falling by an average 18% for prime assets. In the process, capital values have fallen below replacement cost in many markets, which is constraining new commencements.
Find Out More
Post
Housing policy outlook clears after Federal Election in Australia
Saturday's Federal Election decisively delivered a second term for the Albanese government, clearing up the policy outlook.
Find Out More