Chad Owens, vice president of NorthMarq’s Houston-based regional office provided his insight in a National Real Estate Investor article titled, “Are Lenders Shying Away from the Retail Sector?” While volatility and U.S. retail sector uncertainty has made lenders cautious, Owens noted that “the right deals are getting financing.”
Owens highlighted the fact that December retail sales dropped 1.2 percent—the biggest decline in nine years—while the street’s projections indicated they should have risen 0.2 percent.
“A lot of that ‘noise’ hasn’t been ignored by lenders, but it’s nothing new. We’re dealing with the headwinds of the Amazon effect, coupled with a lot of bankruptcies within the retail space, so you have all of this noise to deal with.”
Despite challenges, Owens says there’s still available capital for good deals.