Shopping center sales will rise moderately in 2012, as banks list reclaimed assets and become more amenable to short sales, says Marcus & Millichap. Sales involving performing shopping centers will remain scarce due to limited for-sale inventory, as opposed to sagging demand, holding cap rates for quality grocery-anchored properties around 8%. Within the single-tenant sector, credit-tenant deals will remain in high demand, placing further downward pressure on cap rates, particularly for top drugstore assets and fast-food properties with corporate-backed leases. The most sought-after triple-net deals currently trade between the 6% to 7% cap rate range, while local or regional tenants tend to sell between 9% and 11%.Report: Shopping Center Sales to Rise in 2012
Shopping center sales will rise moderately in 2012, as banks list reclaimed assets and become more amenable to short sales, says Marcus & Millichap. Sales involving performing shopping centers will remain scarce due to limited for-sale inventory, as opposed to sagging demand, holding cap rates for quality grocery-anchored properties around 8%. Within the single-tenant sector, credit-tenant deals will remain in high demand, placing further downward pressure on cap rates, particularly for top drugstore assets and fast-food properties with corporate-backed leases. The most sought-after triple-net deals currently trade between the 6% to 7% cap rate range, while local or regional tenants tend to sell between 9% and 11%.
