Institutions are 26% of retail investment volume, JLL's Snedden says
Grocery-anchored and power centers now trade within about 50 basis points of each other, he told IREI.
At a glance
Institutional investors now account for 26 percent of retail investment volume, up 14.6 percentage points from 2024, Austin Snedden, a senior director at JLL Capital Markets, told IREI.
Cap rates on core grocery-anchored product have compressed, with grocery-anchored and power centers now trading within roughly 50 basis points of each other, according to Snedden.
In early October, JLL closed the sale of the 110,000-square-foot Bedminster center, fully leased and anchored by Kings Food Markets and CVS, to Asana Partners at an undisclosed price.
Institutional investors now account for 26 percent of retail investment volume, up 14.6 percentage points from 2024, Austin Snedden, a senior director at JLL Capital Markets, told IREI. Those buyers are also driving 45 percent of all deals above $100 million, he said.
Cap rates on core grocery-anchored product have compressed, with grocery-anchored and power centers now trading within roughly 50 basis points of each other, according to Snedden. The average spread across the broader multitenant retail sector has narrowed to 70 basis points, he said.
As core pricing tightens, private capital is shopping secondary markets, neighborhood centers and unanchored strip centers for relative value, Snedden said.
In early October, JLL closed the sale of the 110,000-square-foot Bedminster center, fully leased and anchored by Kings Food Markets and CVS, to Asana Partners at an undisclosed price.
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