Debt and equity capital flowing Into retail real estate

Published: May 27th, 2014

Written by:

Recovering retailers are searching for prime shopping space which prompted debt and equity providers to come out at the RECon conference, causing sold out financial and property services pavilions.

There were huge amounts of finance available to owners, buyers and landlords, with a wide range of options on offer.

Retailers normally insist on prime locations, but the limited supply has forced them to reconsider property types and other locations. There has been an increase in the market for shopping malls which fall outside the top-end.

Lenders, however, have not simply opened the floodgates to any project or borrower. Ground-up developments and non-core properties are still subject to rigorous underwriting reviews.

Properties which are priced above $300 per m² are easier to finance and able to get into the booming CMBS market. Properties below this price require banks for financing, which is also making a comeback. Small tenants can look at community banks.

There are new lenders entering the financing section. Senior investors are seeing fewer quality properties in the market, with much of the available capital going into repositioning, refinancing, expansion and renovations.

Latest news

5 Ways Shopping Centers Can Use QR Codes to Enhance the Customer Experience

If you’ve been inside a shopping mall recently, you’ve probably noticed QR codes popping up everywhere on posters, food court tables, even on the back of parking tickets.