Retail Real Estate Attracting New Investors as Rents Climb, Occupancy Increases: JLL
Originally published on May 25, 2022, by Michael Tucker for Mortgage Bankers Association.
Retail’s journey from underdog to a favored asset class continues, reported JLL, Chicago.
Increased occupancies, population growth and low new product deliveries mixed with high construction costs are all driving retail market rent growth, making the sector more attractive to investors, JLL said.
The top eight markets with high population growth are also leading when it comes to rental growth. With a nearly 63% growth in rental rates since 2011, Nashville is the top momentum market, followed by South Florida at 47.1% and Austin and Tampa both at 39%. Other top markets for rental growth include Denver with 37% and Charlotte, Dallas-Fort Worth and Raleigh-Durham, all with nearly 30% rental growth. These momentum markets have seen rental growth since 2011 above the national 10-year rent growth of 27.7% along with a population growth above the 10-year national average of 7.4%.