Retail Sector - Posted by Ernie

Posted by john on February 15, 2008 at 15:34:31:

Retailer are always looking to expand. In an economic downturn the franchisee activity seems to pick up. As long as you have the traffic counts, it’s always a good investment. Never speculate, always buy around where the demand already is.

Retail Sector - Posted by Ernie

Posted by Ernie on January 25, 2008 at 04:09:05:

I’m relatively new to commercial but I’d like to get everyone’s thoughts on this sector.

Although relatively sold on the concept of NN and NNN investingt(it appears that they would be less hassle than apartment units), is it safe to assume that it’s not a good time to invest in Retail Commercial property due the current downward trend in spending?

Am I looking at this from too much of a macro-economic view?

Your thoughts would be appreciated.

Re: Retail Sector - Posted by Coupon Clipper

Posted by Coupon Clipper on January 25, 2008 at 07:11:57:

I think your macro view is right. There is also the micro view. IMO it is impossible to find a NNN that pays enough to compensate for the risks. Everything is priced for perfection, meaning full occupancy, tenant stability, low interest rates, and appreciation of the properties.

My opinion is that commercial RE is overpriced. There were or are too many investor dollars chasing the returns there. The risk and return ratio is out of whack.

Just my opinion.