Rebecca Wells, Executive Vice President of Midwest Retail Capital Markets at JLL shares her views on retail investment sales at the recent ICSC ReCon. The stars have aligned for extremely favorable selling conditions with market fundamentals and financing availability the best we’ve seen in years. Learn more by visiting: www.jll.com/mwcmg

1. 2014Mid-Year
Observations
Rebecca Wells, CRX, CCIM
Executive Vice President
Midwest Retail Capital Markets
+1 317 810 7009
rebecca.wells@am.jll.com
Stars aligned for retail investment sales:
Views from ReCon and beyond

2. Investors targeting secondary markets to find
yield and place huge amounts of equity
 Very strong price appreciation + 20% YOY
 Retail investor optimism due to improvement in economy
 Bank and CMBS driving deal volumes for retail assets
Secondary market
Midwest/Great Lakes Region
2014Mid-Year
Observations

3. More capital chasing than there is product –
investors are digging deep to win transactions
 Buyers are very competitive to win core,
trophy assets supported by highly
competitive debt options – keeping
returns attractive
Class A/B
malls
Urban high
street retail
NNN single
tenant
Grocery
anchored
retail
2014Mid-Year
Observations

4. Cash rich owners who have spent the last 2-3
years redeveloping and investing in their
portfolios are now monetizing
 Owners have been successful creating value by repositioning
assets with a stronger tenant base
 Now able to take advantage of
market conditions by selling stabilized
assets into a much stronger market
2014Mid-Year
Observations

5. Favorable fundamentals with positive
momentum driving rents and price appreciation
in secondary markets
 Strong net absorption and
demand for space
 Little new construction
 Increasing rental rates and
fewer landlord concessions
 Major national tenants in
expansion/new store growth
mode
2014Mid-Year
Observations

6. REITs/Funds/Institutionals continuing to prune
non-core assets to upgrade existing portfolios
 Sellers pricing rent growth into offerings
 DDR/Kimco/Blackstone/Inland/ARC
 Private buyers very
competitive on pricing given
availability of attractive debt
options
2014Mid-Year
Observations

7. For more information, please contact:
Rebecca Wells, CRX, CCIM
Executive Vice President
Midwest Retail Capital Markets
+1 317 810 7009
rebecca.wells@am.jll.com
Key takeaway:
Extremely favorable selling conditions with
market fundamentals and financing
availability the best we’ve seen since 2008
2014Mid-Year
Observations