Las Vegas, NV has been one of the hottest rental markets in the U.S. and it’s still on the rise.
This is a microcosm of the U.S. market in general.
Elaine Misonzhnik wrote an article for National Real Estate Investor, where she pointed out solid
statistics to give hope for retail rental units.
Reason for optimism
"The good news, according to Ryan McCullough, real estate economist with CoStar, is that retail properties are now showing rent growth for the first time since 2008. In the first quarter, average quoted rates for all retail properties stood at $15.07 per sq. ft., an improvement over $15.08 per sq. ft. a year ago and $15.00 per sq. ft. in the fourth quarter of 2012.
“This rent bump is a sign that the market is finally reaching some degree of equilibrium after two and a half years of slow, but steady recovery,” McCullough says.
Driving the higher rents is greater consumer confidence and continuing recovery in the housing sector, according to first quarter report by real estate services firm Colliers International. Colliers reports that at shopping centers, asking rents rose $0.03 per sq. ft. between the fourth quarter of 2012 and the first quarter of 2013, to $14.80 per sq. ft.
In fact, once the major issues created by the recession—including the housing bust—will finally get worked out, the retail real estate industry can expect quite a strong comeback, notes Severino.
“By 2014-2015, you’ll see the economy in a much better place, a lot of the debt overhang that we are dealing with will be resolved,” he says. “Assuming that we don’t end up with some massive idiosyncratic shock to the system, we’ll be in a much better position.”
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Las Vegas, NV has been one of the hottest rental markets in the U.S. and it’s still on the rise.
This is a microcosm of the U.S. market in general.
Elaine Misonzhnik wrote an article for National Real Estate Investor, where she pointed out solid
statistics to give hope for retail rental units.
Reason for optimism
"The good news, according to Ryan McCullough, real estate economist with CoStar, is that retail properties are now showing rent growth for the first time since 2008. In the first quarter, average quoted rates for all retail properties stood at $15.07 per sq. ft., an improvement over $15.08 per sq. ft. a year ago and $15.00 per sq. ft. in the fourth quarter of 2012.
“This rent bump is a sign that the market is finally reaching some degree of equilibrium after two and a half years of slow, but steady recovery,” McCullough says.
Driving the higher rents is greater consumer confidence and continuing recovery in the housing sector, according to first quarter report by real estate services firm Colliers International. Colliers reports that at shopping centers, asking rents rose $0.03 per sq. ft. between the fourth quarter of 2012 and the first quarter of 2013, to $14.80 per sq. ft.
In fact, once the major issues created by the recession—including the housing bust—will finally get worked out, the retail real estate industry can expect quite a strong comeback, notes Severino.
“By 2014-2015, you’ll see the economy in a much better place, a lot of the debt overhang that we are dealing with will be resolved,” he says. “Assuming that we don’t end up with some massive idiosyncratic shock to the system, we’ll be in a much better position.”
http://nreionline.com/retail/retail-asking-rents-uptick-first-time-2008
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125