Retail Rents 2021 - when do things start moving, how low will they go
Any clue what’s going to happen to retail rents in 2021? There are obviously winners and losers and the herd will be thinned. Class A 2nd gen retail space in my market was $20 - $25 PSF, will be interesting to see when spaces start going dark. Class B and C space going to get slaughtered
[{"id": "gj280qz", "text": "Class C gonna class C", "replies": [], "depth": 1}, {"id": "gj2dvgp", "text": "What market is that?", "replies": [{"id": "gj2dyny", "text": "Atlanta metro", "replies": [{"id": "gj2grvv", "text": "Atlanta is the most binary market I\u2019ve ever invested in - you either win or you lose there\u2019s literally no in between. ATL and Hou are on my no-no list", "replies": [{"id": "gjw97ih", "text": "Houston is tough.  Never done anything in Atlanta.  Reminded me of Detroit in many areas (haven't been there for 17+ years so, maybe it's different now).", "replies": [{"id": "gjwdhee", "text": "Houston blows, you either hit a grand slam or eek out a break even. Way too cyclical across all asset classes, hard pass. Atlanta is similar in that it\u2019s totally unconstrained by supply and really fucking cheap so it\u2019s a constant knife fight. Oh and the tenants in both cities suck (residential, office, retail, whatever). No thanks!", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gj2jw4j", "text": "I think low cost of living areas have solid retail since Amazon and online orders haven't infiltrated those markets yet. Still cheaper to buy clothes in store and try them on etc", "replies": [{"id": "gj2k0uf", "text": "....YET", "replies": [], "depth": 2}, {"id": "gj2ldrm", "text": "What is a low cost of living place without amazon?  Are you talking like off the grid places or the kind of places where you have to drive half an hour to get your mail?  Everyone else has Amazon and big box retail doesnt exist in those remote places anyways.\n\nI'm slightly optimistic on some retail but \"well it will be fine where Amazon and online stuff doesnt work\" is basically saying its fucked", "replies": [{"id": "gj2reor", "text": "Yep. The Virgin Islands is the only place I know Amazon doesn't service. Amazon reaches everywhere the post office services.", "replies": [], "depth": 3}], "depth": 2}, {"id": "gj371a8", "text": "Local retailers are repositioning, more nimble to make the move. And yes Amazon is everywhere.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gjw91kp", "text": "Office space is going to recover waaaaaaaaaay faster than most people expect.\n\nSmall industrial is a killer place to build / invest (not the giant Amazon warehouses....the stuff that a small guy; 1,500 sf space can lease).", "replies": [], "depth": 1}]