Historically, if an asset was well located, had the right credit tenancy, or was a dominant shopping center, an institution of REIT would be interested in placing large sums of capital. Today, things have changed, and investors must take into consideration:
- Surrounding demographics and if the shopping center still caters to the needs of the area
- The role of the anchor tenant
- Property’s age, condition, location, and accessibility
- Tenant quality
- Length of lease
A deal may look great on the surface – a large asset with the perfect anchors and tenants in tow for the vacant space – but is it simply too big? Click below to read more on the strategy behind breaking up retail.