Retail Real Estate Investment To Advance This Year, JLL Forecasts
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Despite the large number of store closings and retail layoffs this year, JLL's Greg Maloney projects retail real estate investment will advance through 2017.
The CEO of retail in the Americas said investors continued to pump capital into the sector last year, thanks in part to the limited supply that came online not outpacing demand. Retail construction fell 9.1% in 2016, helping push rents up almost 3% while vacancy rates held steady at 5%.
Maloney said one easy way to monitor the health of a sector is by tracking capital investment. Investors pulled away from retail in Q1 2016, but they played catch-up for the rest of the year, prompting JLL to forecast 3% growth in total global volume of retail real estate investment in 2017. Despite all the woes retailers are experiencing with same-store sales and shifting consumer preferences, retail investment is projected to be alive and well throughout 2017. [Forbes]