I had a chance to sit down with Keith Valentine this week and ask him about what he is currently seeing in the real estate industry within the dispositions arena. Keith has been in the Real Estate industry for over 30 years and focusing on dispositions for the last 18 years. He has seen the market in a number of different states and sheds some light for us on what he is currently experiencing.
Keith, what would you say is the overall feel of the real estate market for dispositions?
In order to answer this you have to look at Land and Building separately as well as look back to what the market was. For land during the recession no one needed outparcels because they needed a loan. So unless they were self-financed there wasn’t much movement. Now the market is broad and deep and we are getting a lot of calls on our inventory. As for our buildings there was less demand due to corporate slow down during the recession. Now they are in demand, and due to their good locations, we are very busy.
Do you see any particular industries growing over others?
Everything seems to be growing and moving more than it has been and certainly more than in the Great Recession. For the outparcels, I have seen new fast food and fast casual concepts growing as well as the traditional fast food. In addition to those, cell companies, dental, automotive, dollar stores, and to a limited degree the banks and financial services. For our buildings I think the question is more “Who’s back?” and I think that is the craft stores like Hobby Lobby & Michaels, sporting goods, and home decorating stores. Shopping centers have just started building again in the last 24 months and they still want to be grocery anchored. The specialty grocery industry is also launching their smaller cost-effective brands that are geared toward millennials.
In contrast have you seen any industries whose growth has slowed or stopped all together?
I would say that I’ve noticed industries that have had to re-vamp their approach due to the changing climate like those in the electronics, computer and office supply segments.
Final question, compared to this time last year what changes are you seeing?
Pricing of property and space have increased to the point that it makes you think “What Recession?” and activity has increased accordingly.
Thank you Keith for sharing your insight with us. He wanted to leave us with one final thought, there is still going to be a greater demand for better sites. Overall, it seems like the market is only getting better every day, things are adapting to the new consumer demands and marketplace but still moving and good product will always move.
By Keith Valentine and Amy Marrs