Report: Investors should be bullish on malls
After enduring what one investment advisory firm called a “brutal two years,” conditions have broadly stabilized in the retail real estate industry and a revitalization is underway.
Hoya Capital Real Estate reported this week that tenant sales per sq. ft. have risen by 5% in the past year at Class A malls, a figure consistent with the growth of retail sales.
In addition, the company noted, top-tier malls continue to perform well across all metrics that include tenant sales, average rent, and occupancy levels.
Hoya gave investors four more reasons to be bullish on mall REITs: more e-coms seeking a physical presence in centers; an increase in mall redevelopment; a surging economy based on tax cuts and deregulation, and a mis-stated and over-reported retail apocalypse that makes mall REITs a savvy investment right now.
“We’ve been discussing for several quarters that retail sales data has actually been solid and accelerating following a downturn from 2015 through late 2017. Our Hoya Capital Brick & Mortar Index showed an average 4.0% rise in spending at brick-and-mortar locations over the past 12 months through July,” read the report.
Hoya Capital Real Estate reported this week that tenant sales per sq. ft. have risen by 5% in the past year at Class A malls, a figure consistent with the growth of retail sales.
In addition, the company noted, top-tier malls continue to perform well across all metrics that include tenant sales, average rent, and occupancy levels.
Hoya gave investors four more reasons to be bullish on mall REITs: more e-coms seeking a physical presence in centers; an increase in mall redevelopment; a surging economy based on tax cuts and deregulation, and a mis-stated and over-reported retail apocalypse that makes mall REITs a savvy investment right now.
“We’ve been discussing for several quarters that retail sales data has actually been solid and accelerating following a downturn from 2015 through late 2017. Our Hoya Capital Brick & Mortar Index showed an average 4.0% rise in spending at brick-and-mortar locations over the past 12 months through July,” read the report.