Nothing is Stopping NYC Retail Investment Sales
Trever Gallina
I help fashion and luxury product brands acquire retail stores in New York City.
Right now in retail property investment sales in NYC, all conversations revolve around rising interest rates, and whether or not a recession looms. The truth is that most people are operating as if we are already in a recession. That hasn’t stopped anyone from looking at retail, it’s just that the challenges have changed rapidly. Therefore, sellers must understand a few things before they list properties for sale: Firstly, what are the most recent offers on similar properties? Not the traditional “broker comps,” nor deals that have recently sold. This is critical, because those recent property sales were done off of offers made at least 60 days ago, and don’t reflect the most recent or anticipated rate hikes. And secondly, if yesterday’s news was, “Which retailers are actually paying rent?", then today’s news is that banks are looking very closely at who the actual buyers are, and their recent track records, before they commit to a loan. Sellers must do the same before committing to a deal.
Keeping our eyes on the horizon, there are a lot of great data points that sellers of retail properties can get excited about.
? First time since 2018 that the average citywide price psf for retail investment sales has increased.
? Transaction volume year over year in March rose 67%
? Retail foot traffic & sales are up over pre-pandemic levels
? Core retail sales spending is up nearly 18%, inflation adjusted, over pre-pandemic levels.
? Store-based retail sales accounted for nearly two-thirds of all core retail sales spending in March & April.
? Vacancy rates are down 30 basis points to 2.9%.
? Asking retail rents increased 2.9% YoY in March citywide, to $57.95 PSF. All outer boroughs improved, except for the Bronx.
One thing is for certain, there are always new buyers in every real estate cycle and given the above the retail property buyer pool is larger now than a year ago.
I help Real Estate Investors augment their profits and save on taxes by creating their "Own Bank" without having to worry about market fluctuations and losing their money.
2 年Did you ever come across a potential seller that is hesitant to sell because his tax bill will be massive and he doesn’t want to put it back in real estate using a 1031 exchange ? There is an alternative where using a Deferred Sales Trust client can defer all taxes and reinvest in any business he wants . We can even suggest products where he can make 5-8% tax free. If interested in discussing this let me know .