Retail Capital Markets posted impressive numbers in H1.  Will it continue?

Retail Capital Markets posted impressive numbers in H1. Will it continue?

Total retail transaction volume was just $45 billion in the first half of 2022, an 81% year-over-year increase, according to new research from JLL.

The West Coast was the most active market with total volume of $13.2 billion, up 124% from 2021, followed by the Southeast at $11.2 billion and the Southwest at $6.4 billion. Yields varied by region, with the West Coast having the lowest yield (average cap rate of 5.72%), followed by the Southwest at 6.34% and the Midwest with the highest average cap rate at 7%.

JLL analysts note that in the quarter, there was strong demand for centers anchored in supermarkets, with volume of $3.8 billion and an average cap rate of about 6.32% on an in-place basis. The real estate type was a favorite of institutional money in particular, with such groups acquiring some $600 million more than they sold.

Private equity was the most active participant in the second quarter, but its market share declined 7% year-over-year.

Impact of rising interest rates

Back1 of 2

Leave a Comment

Your email address will not be published.