Distressed properties and retail centers in secondary markets may present the best opportunities for investors, said panelists at ICSC's Capital Markets Conference. It will be another six months to a year before prices start coming down, some experts said.
Outlet centers are booming during this economic downturn, said executives at the ICSC RECon show in Las Vegas. The three major owners, Chelsea Premium Outlets, Prime Retail and Tanger Factory Outlet, have roughly 4.5 million square feet of new space under development.
A clean balance sheet and access to capital are necessary for retail developers to weather the current economic downturn, note experts. While some developers are seeking assistance or shutting down projects, long-term players that seize demographic opportunities will come out ahead, says John Silvia, Wachovia Bank's chief economist.
A panel of experts addressing Coldwell Banker Commercial brokers in Orlando, Fla., said opportunities for commercial real estate investment remain plentiful in markets that might have been previously overlooked. Secondary and tertiary metropolitan markets across the country offer the best opportunities in the current market. "Capital is going to flow to the opportunities," said Glenn Mueller, a real estate investment strategist with Dividend Capital Group.