High Interest Rates Start To Weigh on Retail Transactions and That Could Lift Cap Rates

Unlike other property types, price declines in the retail property segment have been mild. Surprisingly, retail’s all-time low vacancy rate and the lack of new construction during the past decade have turned the long-held negative view of retail on its head. And yet, there’s another key factor that has been helping to hold up retail property values, namely buyer motivation. However, that is likely to change in 2024.