Retail Investor Sentiment Report – May 2018
In April 2018, Real Capital Markets surveyed and interviewed a wide range of retail sector professionals. Participants weighed in on the retail industry and provided their sentiment on various investment related topics.
HIGHLIGHTS INCLUDE:
- Experiential retail is the wave of the future, as rapid growth in e-commerce and changing consumer buying habits dictate a need for retail that provides unique experiences, such as entertainment, fitness, and healthcare.
- Some retail is doing just fine! Specific segments, including Class A malls and grocery-anchored centers, are performing well and are in great demand.
- Given the increasing number of retail bankruptcies and store closings, big box vacancy is now viewed as the greatest threat to those investing (nearly 40 percent).
- The current state of retail investing is leading 59 percent of investors to consider other asset classes, or other value-add strategies, with the majority focusing on multifamily.
This is the new age of retail, one where shopping is intertwined with entertainment, healthcare, technology, fitness and other consumer centric activities. The overall retail transformation is both a challenge and an opportunity for the retail sector—and is considered the means for capturing and enhancing value and investment returns.