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December 19, 2023
Big investment firms that have shunned retail real estate for years are giving the sector a fresh look, the latest sign that this long beleaguered property type is on the mend.
Institutional buyers are still approaching retail with caution, sticking to safe assets and largely avoiding enclosed malls. Kairos Investment Management CEO Carl Chang, who owns primarily grocery-anchored and convenience retail, has been impressed by the strength of dine-in restaurants since the pandemic. But he believes a correction is coming next year if the economy falters.
“I think we’ll finally begin to see the higher interest-rate environment slow down consumer spending,” Chang said.
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