Retail real estate is in for a rough ride, according to the latest \u201cEmerging Trends in Real Estate\u201d report by the Urban Land Institute and PricewaterhouseCoopers L.L.C. \u201cRetail stays down for a while,\u201d the report stated.According to the report\u2019s assessment of the prospects for 11 subsectors–three of which are retail–neighborhood\/community centers have the best outlook among the retail subsegments. On a scale of 1 to 9, with 1 meaning \u201cabysmal,\u201d 5 representing \u201cfair\u201d and 9 signifying \u201cexcellent,\u201d that subsegment earned a mark of 4.67 for investment projects and a tally of 4.08 for development prospects. Power centers pulled in a score of 4.06 for investment prospects and 3.5 for development prospects. Regional malls are forecast to have a more challenging time. That subsector\u2019s score for investment prospects came in at 3.89, while its score for development projects was 3.11. By December 2009, the expected cap rate for neighborhood\/community centers is forecast to be 7.54 percent, a 73-basis-point uptake from July 2008\u2019s 7.01 percent. The cap rate for power centers is expected to hit 7.57 percent, up 66 basis points from 6.91 percent in July 2008, while regional malls are projected to achieve a cap rate of 7.83 percent, up 52 basis points from 6.19 percent in July of this year.\u201cShopping center owners brace for value losses and declining operating incomes,\u201d the report predicted. \u201cReplacing lost tenants will prove difficult as retailers retrench. Until job growth resumes and gasoline costs moderate, consumers\u2019 enthusiasm lags.\u201d Higher interest rates coupled with decreased housing values won\u2019t make matters any easier.<\/p>\n","protected":false},"excerpt":{"rendered":"
Retail real estate is in for a rough ride, according to the latest \u201cEmerging Trends in Real Estate\u201d report by the Urban Land Institute and PricewaterhouseCoopers L.L.C. \u201cRetail stays down for a while,\u201d the report stated.According to the report\u2019s assessment of the prospects for 11 subsectors–three of which are retail–neighborhood\/community centers have the best outlook…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1003878420","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n