Margaret Caldwell speaks with Shopping Center Business: Buyers have reasons to buy, sellers just need to sell
Managing Director & Senior Vice President
ATLANTA (May 12, 2023) — Margaret Caldwell, managing director and senior vice president in Northmarq’s Atlanta office, was recently interviewed and featured in a Shopping Center Business article titled, “Buyers have reasons to buy, sellers just need to sell.”
Caldwell thinks it’s a great time to be a retail owner ... but so do potential sellers.
“The biggest challenge is the small supply of retail in this market,” she said. “Sellers are very hesitant to sell, even though the ones who are selling are experiencing great results and achieving their pricing.”
Caldwell said the Southeast has seen a slight change in pricing of approximately 50 basis points over roughly the past year, but shopping centers in Atlanta; Charlotte, N.C.; Raleigh, N.C.; Charleston, S.C.; Greenville, S.C.; and much of Florida and Texas are still presenting historically low cap rates. Occupancy is at a historic high in most areas with strong leasing and rent growth.
In addition to examining the retail market, Caldwell also offered advice to owners who plan to hold.
“Now’s the time to eliminate tired retailers that aren’t performing, constantly complaining and/or requesting concessions,” Caldwell said. “Replace your challenged retailers with credit retailers that are willing to pay higher rents and drive more foot traffic.”
And even though it's a tough market for financing, Caldwell advised potential sellers about the opportunity in front of them — especially if they have a Class A open-air center.
“As crazy as this market is, retail is in strong demand with all types of investors,” she said. “There is concern over the debt markets, but investors still have cash to buy shopping centers. No one is saying ‘pencils down.’”
Topics covered in the article include:
- Fundamentals that created the strong Southeastern retail market
- Economics of retail development
- Retail cap rates
- Eliminating tired retailers
- Financing
Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales, loan servicing, and fund management. The company combines industry-leading capabilities with a flexible structure, enabling its national team of experienced professionals to create innovative solutions for clients. Northmarq's solid foundation and entrepreneurial approach have built an annual transaction volume of more than $39 billion and a loan servicing portfolio of more than $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq established itself as a provider of opportunities across all major asset classes. For more information, visit: www.northmarq.com.