Convoy Capital’s Post

What you need to know about Retail Commercial Property and the Fincancing options that are available to you [email protected] You can read the full article here: https://lnkd.in/eZRt7WEN

Have you seen the Atlanta spotlight feature in Shopping Center Business with perspective from Ackerman Retail President Leo Wiener on current retail trends? He discusses Atlanta’s “huge net in-migration of people,” the impact of tightening vacancies and more: https://lnkd.in/gZpk5itF #CRENews #Atlanta #ATLRetail #Leasing #Retail #LandlordRep #TenantRep #AckermanRetail

The US Retail Real Estate sector is booming with lease rates up close to 20% and occupancies north of 90%. With limited upcoming supply on the horizon, landlords are withdrawing concessions such as percentage rents which became the norm during the pandemic and are favoring fixed lease rates to ensure stability of cash flows and valuations.

For Retailers, Business Is Back and Landlords Say No More Rent Discounts. Landlords’ increasing leverage is sign of retail real estate’s recent strength https://lnkd.in/eJUaqeWs #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables

Interesting article/update on the status of retail leasing and percentage rents (one of the topics we cover in FN352)! https://lnkd.in/gJ7pkt98

Retail Bankruptcies Pose Pain for Landlords as Headwinds Persist. Inflation, high interest rates cause issues for retailers. Landlords take center stage in retail bankruptcies https://lnkd.in/erWW-Y-U #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables

EVERSTREET (WBE) estimates that roughly 78% of chronic retail vacancies in Boston are in Unestablished Corridors. Approximately 81% of approved Master Planned projects in Boston are also in Unestablished Corridors. Our Planning Strategies help you cultivate demand to protect your asset from dark, empty storefronts. Thanks to my collaborative partner Carolyn Low Spicer from McDermott Ventures LLC for working on this thought leadership piece with me! #retail #storefronts #strategy #consulting #planning

Commercial lease negotiations are all about which party has more leverage. During the first year of the pandemic, many retail tenants closed and those that survived struggled mightily because customers were staying at home. Many landlords responded by offering drastically reduced rents and accepting percentage-rent deals (in which the tenant pays a percentage of monthly sales that exceed a certain threshold). Now, with consumer spending strong and retailers expanding, landlords (particularly owners of upscale properties in prime locations) have regained the upper hand in negotiations and are increasingly unwilling to provide concessions. This stands in stark contrast to office landlords that are boosting concessions such as free-rent and construction allowances to tenants. "Consumer spending remained resilient last year despite high inflation and recession concerns, and Americans’ views on the economy are improving at the start of 2024. This, coupled with scant new construction of retail real estate, leaves landlords optimistic that retailers will be vying for limited available space for the foreseeable future. Vacancies at U.S. shopping centers fell to 5.3% in the fourth quarter, the lowest level since real-estate firm Cushman & Wakefield began tracking the metric in 2007. Average asking rents rose to $23.70 a square foot and are now nearly 17% above 2019 levels."

Retail REITs are raising their financial outlook for the remainder of 2024. Bisnow reports publicly traded REITs, including Simon Property Group (SPG), Kimco Realty Corporation (KIM), Brixmor Property Group (BRX), Regency Centers (REG), Federal Realty Investment Trust (FRT), and NNN REIT, Inc. (NNN), all raised their projected funds from operations (FFO) for the year. The grocery sector also continues to be a strong performer for retail REITs. Regency Centers, for instance, reported that six of its top signed but unopened leases are grocery stores. Kimco Realty also noted the ongoing ‘accelerating’ demand for grocery-anchored leases. #retail #reits #news #realestate #earnings

There's no question that retail leasing fundamentals were very strong in 2023, definitely a landlord's market. I wouldn't want to move either given crazy new lease rates and T.I. costs for new leases. It will be interesting to see how this all plays out moving into the second half of this year given estimates on consumer coffers drying up and fed rates coming down.