Miami Named Among Top 10 Best Markets For Retail Investment

Oct 14, 2015 No Comments by

A look at the current Commercial Property Price Indices (CPPI), as well as the outsize growth of rental rates in certain markets, shows that the retail sector continues to be an attractive place for real estate investors and developers to park their money.

The annual “Emerging Trends in Real Estate” survey by consulting firm PwC and the Urban Land Institute (ULI) gets more specific about which markets might be the safest bets for such investment, based on buy/hold/sell recommendations from hundreds of commercial real estate industry professionals.

The survey included responses from 1,465 participants who work for real estate ownership and development companies (34.3 percent), real estate services firms (26.5 percent), institutional investment and management firms (11.5 percent), lending firms (7.4 percent), real estate brokerages (6.5 percent) and other real estate-related outfits.

Here are their thoughts on the most favorable markets for retail.

1.  San Jose, CA
Forty-four percent of respondents recommended buying retail assets in San Jose, while another 50 percent advised current owners to hold their assets.

2.  Orange County, CA
Orange County also got a 44 percent “buy” recommendation, with 48 percent of respondents recommending a “hold.”

3.  Dallas/Fort Worth, TX
Forty-seven percent of respondents voted on “buy” for Dallas/Fort Worth, while 31 percent advised investors to “hold.” According to the survey’s authors “Concerns about potential overbuilding are on the market’s mind, but the sentiment is that new construction is still justified at this time.

4.  Nashville, TN
Nashville got a 47 percent “buy” vote and a 41 percent “hold” vote.

5.  Boston, MA
More than half the survey respondents (52 percent) believe that retail properties in Boston are a “buy” right now, while another 24 percent recommended holding on to retail assets.

6.  Los Angeles, CA
Fifty-four percent of respondents believe Los Angeles is a good place to buy retail properties right now, while another 33 percent advised existing owners to “hold.” Many industry insiders believe that the multifamily and retail sectors are the most under-supplied in Los Angeles today, PwC/ULI researchers note.

7.  Portland, OR
Portland received a 59 percent recommendation to “buy,” and a 32 percent recommendation to “hold.”

8.  Austin, TX
Sixty percent of respondents view Austin as a place to buy retail right now, and another 36 percent would hold onto existing assets. “Austin may well be a market where the growth in population leads to the need for new retail centers,” the survey’s authors write.

 

9. Miami, FL
The retail market in Miami is red-hot right now, with 65 percent of investors believing the city is a good place for retail investors and 35 percent recommending a “hold” for existing properties. In fact, retail was judged to be the strongest of all commercial property sectors in the city today, “benefiting from good population and income growth, as well as the strong tourism component in the market.”

 

10. Brooklyn, NY
Brooklyn is having a moment right now, and its retail market is no exception. Sixty-eight percent of respondents recommended buying retail properties in the borough, and another 21 percent said they would “hold.”

 

Source:  NREI

 

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Industry News, Miami-Dade County Retail, NA, Retail
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