- Shopping Center REITs are the second-best performing major property sector this year - significantly outpacing their mall REIT peers, despite the recent "retail rout" and moderation in stimulus-fueled retail spending trends.
- After a surge in store closings during the pandemic, the number of store openings has outpaced closings by nearly 2x since early 2021 with particular strength in larger-format strip centers.
- Shopping center fundamentals are now strong – if not stronger than before the pandemic. Occupancy rates climbed to the highest level since early 2015 while rental rates continue to accelerate.
- The versatility and larger footprint of the strip center format have been a winning formula. Retailers have increasingly utilized their brick-and-mortar properties as hybrid "distribution centers" in last-mile delivery networks.
- With 'embedded' dividend growth and solid positioning for a variety of economic scenarios, shopping center REITs remain one of our favorite value-oriented REIT sectors with a relatively promising forward outlook.
For further details see:
Shopping Center REITs: Winning The Last Mile