Top 10 Markets for Retail Investment
From The Buxton Co
With continued interest in the retail sector, investors and developers are looking for the markets that will provide the biggest returns.
To determine which markets offer the best opportunities, PwC and ULI conducted a survey that took into account buy/hold/sell recommendations from thousands of commercial real estate industry professionals.
Based on the results, these are the 10 most favorable markets for retail:
San Jose, CA – Of the survey respondents, 44% recommended buying retail assets and 50% recommended current owners hold their assets.
Orange County, CA – Like San Jose, Orange County received a 44% “buy” recommendation with 48% saying “hold.”
Dallas/Fort Worth, TX – Dallas/Fort Worth got a 47% “buy” vote and 31% voted “hold.”
Nashville, TN – 47% of voters said to “buy” and 41% said to “hold.”
Boston, MA – 52% of those surveyed advised investors to “buy” while 24% said “hold.”
Los Angeles, CA – While researchers believe that the retail sector is under-supplied in Los Angeles, 44% of respondents voted “buy” and 33% voted “hold.”
Portland, OR – More than half of survey respondents – 59% - believe that retail properties in Portland are a “buy” and 32% recommend holding on to retail assets.
Austin, TX – Perhaps due to the population growth, 60% of voters said to “buy” and 36% advised holding.
Miami, FL – With retail being the strongest commercial property sector in Miami, 65% of respondents said to “buy” and 35% said to “hold.”
Brooklyn, NY – Brooklyn took the top spot with 68% of investors recommending the purchase of retail properties and 21% voting “hold.”
A Word of Caution
As we write about the top markets, it’s always important to stress the fact that if you’re looking to expand your presence, you need to perform your due diligence and pick the markets that are ripe with your customers or potential customers. Those will be the best markets for your unique brand.
And with today’s analytic tools, it’s easier than ever to determine the locations of your best customers and the markets with the most potential.
Buxton is the leading customer analytics firm that helps organizations identify who their customers are, where those customers are located, and the value those customers have to the organization.
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