Single-tenant, grocery-anchored properties likely to be among investors’ favorites.
While the COVID-19 pandemic has battered the retail sector, investors shopping for relatively safe retail sector bets have been willing to pay a premium, according to a CoStar analysis.
That has benefited the sales volume and pricing for single-tenant retail properties, keeping them above pre-pandemic levels. These types of assets are likely to have more pricing power in the new year while trailing multi-tenant retail properties recover.
Grocery stores, which saw growth in both sales and employment last year, are expected to remain among investor favorites, according to the analysis. It comes as urban retail real estate in major markets is catching up with suburban areas for rent growth.
For a presentation of all of CoStar’s predictions for the coming year, click here.