Retail cap rates top 7.5pc, to remain above 7pc in 2023

RESEARCH

A FLURRY of sub-regional shopping centre sales in the December quarter pushed retail transaction cap rates up to 6.3%, according to The Data App, and they are likely to go higher in 2023.

Data from the research collective shows cap rates averaged 7.59% in the month of December, and according to...

In the December quarter, the implied compensation for investment risk for investing in shopping centres was 4.68%, which is over 70 basis points lower than a year earlier.

“Simply accepting a similar compensation for risk now, as this time last year, would imply cap rates above 7%,” Ellis said.

“Clearly, since not all assets are equal and online shopping has made inroads into spending behaviour, cap rates are unlikely to be...

Cap rates jumped to 6.3% up from 5.65% in the September quarter and a cyclical low of 5.33% in the June quarter.

Among the deals was the Dexus Wholesale Property Fund completing a sell-down of a trio of sub-regional shopping centres,...

Despite the flurry of transactions to close out the year, the number of deals remained well down on 2021 – falling by...

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