From “phygital” to fulfillment, industrial to ESG, there’s an evolutionary resurgence in retail that presents new opportunities for innovative commercial real estate companies.
Current real estate interest rates are in free-fall, now at depths never seen in the US. We can blame the COVID-19 pandemic in part for today’s ultra-low interest rates, but the reality is that rates have largely been in decline since the 1980s. It hasn’t been a straight line down, but the general trend has been lower and lower rates over time.
In an effort to merge close-knit communities with urban-style living, developers and investors have sought innovative ways to create a lifestyle setting where the opportunity to work, live, shop and play can all be found in relatively close proximity. The result has been a rise in modern mixed-use properties, which are generally a fusion of two or more uses, including commercial, residential or retail space.
We usually think of capital as something which has value. Traditionally we have defined that value by the willingness of borrowers to pay interest and by the returns which investors see as acceptable. But now we have a new consideration.