Jones Lang LaSalle's 2010 Retail Outlook projects retail transactions and sales volumes to increase as customer demand starts to gradually recover.
In the new year, investors looking to take advantage of low acquisition prices are likely to find some of the biggest value in Class A trophy shopping malls.
Kris Cooper, managing director in the retail investment sales practice, remarks, The continued lack of liquidity in the debt markets has contributed to pent-up demand, and we expect opportunistic investors to cautiously re-enter the market in early 2010. We're just now seeing lenders' willingness to lend to strong sponsors open up, but those lending offers are at far more conservative levels than we've seen in the past.
Because of pending debt maturities and the need for capital, highly leveraged institutional investors are expected to hold on to properties unless forced to dispose of them. Cooper concludes, Buyers will probably stick around for the next six to nine months before seeking better opportunities. We are also seeing significant interest from international buyers who feel now is the time to re-enter the U.S. market.
Source: GlobeSt.com, Katie Hinderer (12/13/09)