Retail REIT and CMBS investors were pleased with the recovery after The Great Recession when retail commercial real estate prices fell then rebounded. But we are seeing a crucial turn in retail real estate values.
The cause? The 2017 surge in retail store closings.
In terms of square footage, it is anticipated that retail store closings will be the largest in modern history.
Smaller retail footprints like RadioShack lead the announced closures.
Digital (online) shopping took its toll.
And stagnant wage growth for the majority of Americans hasn’t helped. The worst after a recession in modern history.
Retail vacancies are now about 10% again after zooming upwards during The Great Recession.
Retail (mall) REIT Kimco has not had a good time since July 2016.
Did someone mention Malls? As in Shauna Malwae-Tweep?