March 16, 2018

Finding Value in Today’s Retail Commercial Real Estate Market

The retail commercial real estate market is undergoing dramatic changes with every passing year. This can largely be attributed to the growing E-commerce marketplace and the shift consumers are making towards shopping online. Amazon and other large online retailers are causing major disruptions in the marketplace. The retail sector took some significant hits in 2017, and many investors are fearful of this trend continuing.

Major retailers are shutting their doors, but that doesn’t mean you should necessarily be afraid to invest in retail commercial real estate. This could signify that there are undervalued commercial property opportunities for rent or for sale that you can take advantage of today. There will always be a need for retail space that allows consumers and business owners to have a physical location for their goods or services. We have prepared a few tips below for finding value in today’s unpredictable retail commercial real estate market.

Seek Underpriced Property in Recently Reinvigorated Areas

Often times, finding the perfect retail commercial property for sale is all about finding value in areas that are up and coming. Thinking about the future of the area and what type of demographics you can expect in the coming years can give you a great indication of whether or not a property has a lot of potential and is undervalued.

Find Spaces with Currently Successful Tenants

If you can find a property with at least a few tenants who are currently bringing customers in, you might have a great opportunity on your hands. Locating a center or retail space with several struggling tenants but one or two very successful tenants will allow you to purchase the property at a discount and revitalize it for the future. Having a few anchor tenants can provide a great foundation for building a commercial real estate powerhouse.

Shopping Malls Are Not Dead

Shopping malls have taken a big hit in recent years as we mentioned earlier, due to Amazon and the exodus of consumers that have moved their shopping habits online. That being said, there are some incredible values to be found across the nation by exploring shopping malls available to purchase. These staples of retail commercial property still bring in significant amounts of people and money, and most owners are highly motivated to sell.

Without a doubt, there is a lot of value to be found in today’s retail sector of the commercial real estate market. If you can overcome widespread fears that are affecting the sector as a whole, there is the great potential to be found. We strongly suggest keeping retail space in mind when seeking out commercial property for sale.

For more information, call Rakow Group now at (914) 758-0220 and team up with the best in the industry.