Investing in retail real estate

PERE’s 2024 Retail report shows why private real estate managers and investors should not underestimate the sector.

Following years of disruption and countless reports on the death of retail, investors and managers that had been sitting on the sidelines are beginning to give retail a second look. Fundamentals are promising as rock-bottom rents and a dearth of new construction are making this an interesting time to invest in certain subsectors.

Illustration of a mall front and shopping retail units

Retail shows no sign of closing down

In-store shopping was never really threatened by the rapid growth of e-commerce, and now the two are working in tandem with each other.

PGIM Real Estate: Retail is on a comeback path

Rents have bottomed out across many global markets, making the sector more attractive from an investment standpoint, says PGIM Real Estate’s Sebastiano Ferrante.

Look Ahead 2024: Why Hines regards retail as a ‘favorite asset’

The US retail availability rate is set to drop by 20 basis points in 2024 and finish the year at 4.6%, according to a CBRE report.

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Predictions of the end of brick-and-mortar retail are all too familiar. So for many managers, a retail property fund is a difficult pitch. But PERE’s report uncovers a more positive tale; one of a resilient and evolving sector. And for investors, opportunity to find value.

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