Growing institutional appetite for retail drives competition and shifts investment strategies
by Andrea Zander
Institutional capital is taking a larger share of retail investment, increasing competition for core grocery-anchored assets and pushing investors to consider opportunities across a broader range of retail formats and markets. As pricing tightens for high-quality properties, private capital is seeking relative value in secondary markets, neighborhood centers and unanchored strip centers.
In an interview with IREI, Austin Snedden, senior director, JLL Capital Markets, discusses how the shifting buyer pool is influencing valuations, cap rates and investment strategies. He also shares insights into the fundamentals supporting retail investment, the growing institutional appetite for alternative retail formats and what these trends suggest about investors’ approach to risk, income and relative value.
