Why Retail Property Investing

A Proven Sector for Investment

 tag-crop        register-crop       shop-crop

The US retail property sector has a proven 40-year track record of institutional performance and transparency.

4.0%
Annual Sales Growth Forecast
1st
Highest Average Total Return for All Property Types Over the Past Ten Years
$75B
Annual Trading Volume

There are 114,000 shopping centers in the US. The sector is well traded and typically comprises approximately 25% of the total US $300 billion annual transaction volume. The retail property sector investment return performance average of 12% has exceeded all other property types except the multi-family sector over the past five year measurement period and has the highest overall investor return over the past ten years. Over that ten years, the NCREIF-ODCE Index shows that the total return for retail property investment was 8% more than the average of all other commercial property types.

Supported by improving job growth, a rebound of the housing market and a continued high population growth rate, the forecasted consumer expenditures are expected to be superior to the preceding 40-year average over the next five years and likely beyond. The US performance should well exceed the expected consumer performance in Europe. The prospects of a continuing buoyant consumer significantly improves the expectations for above average growth in rents, occupancy and other key operating metrics, which in turn are expected to enhance investment return in this sector.

Shopping Center Industry Quick Facts

114,000
Shopping Centers in the U.S.
$2.7T
Total Annual Shopping Center Sales
63%
Percentage of US Retail Sales from Shopping Centers
7.5B
Total Square Footage of US Shopping Centers
7
Average Number of Years of Ownership of Non-REIT Properties

US Shopping Center Breakdown By Ratio of Total Square Feet