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
Terms of trade will lift income but challenge Australian households
Australia's terms of trade (the ratio of export prices to import prices) increased sharply through the pandemic due to a combination of strong demand and disrupted supply in markets for Australia's major commodity exports. We had anticipated a correction in the terms of trade over 2022, but the Russian invasion of Ukraine and associated volatility in commodities markets has seen the terms of trade spike again.
Find Out More
Post
Eurozone: ECB minutes indicate that July rate hike is a near-certainty
The minutes from the April ECB meeting confirm the hawkish tilt initiated a few months ago continues to gain momentum. With a majority of the council increasingly concerned about the inflation outlook, this makes an interest rate hike already in July almost certain. This should not come as a surprise, however, as recent developments render hawks' case arguably easier to make.
Find Out More