Q1 2016 Multi Tenant Market Commentary

April 2016
TITLE : Multi-Tenant Retail Summary

Commentary
A robust 2015 has led to cap rate levels at near record lows and this strength continued into the beginning of 2016.  Interest rates continue to remain low, mitigating the worry that commercial retail real estate has reached its peak.  Anecdotally, we are beginning to see a fundamental demand shift from grocery anchored centers to unanchored strips.  Buyers "thirsty for yield" are unable to compete with larger funds and REIT's, further driving down cap rates on B and C quality assets.