Real Estate Retail in Rockford IL is a Profitable Investment


The high probability of more interest rate increases by the Federal Reserve, and other developments—ranging from geopolitical uncertainty, U.S. political gridlock and U.S.-China trade friction to sliding stock market performance—that made headlines during the recently holiday season are continuing to do so this year in real estate retail inRockford IL.

The Potential Market in Real Estate Retail in Rockford IL
With so many sources of potential market volatility threatening investors, U.S. real estate remains a relatively safe asset where investors can protect their capital and receive risk-adjusted returns across different market conditions. Foreign investors, especially, will continue to invest in U.S. real estate to avoid currency and market risk. Despite the pullback in Chinese and Russian investments in U.S. real estate due to pressures from their respective governments, investors from Canada, European Union members such as Italy and Spain, the Middle East and other international markets are still eager to buy into U.S. real estate projects.

Sovereign wealth funds for national governments around the world still demonstrate interest in real estate retailin Rockford IL, so foreign investment dollars will continue to flow into commercial, multifamily, multi-use and other real estate projects this year. As of the end of the second quarter, more than 60 percent of sovereign wealth funds invested in real estate, according to Preqin data, and all sovereign wealth funds with at least $100 billion in assets under management invested in the asset class. Furthermore, 68 percent of sovereign wealth funds invest in private real estate funds, according to Preqin, and of the sovereign wealth funds that invest in real estate, 68 percent of them are targeting North America for investments.

Institutional investors, including pension funds, will also continue to look for investment opportunities in U.S. real estate this year—and in retail real estate in particular. Among the institutional investors active in real estate which were surveyed by Preqin in the second quarter of this year, 69 percent expressed a preference for retail real estate in North America. Of those institutional investors, 26 percent were public pension funds and 28 percent were private sector pension funds. Furthermore, the number of closed-end private real estate funds concentrating on retail investments reached a record high in April 2018, with 183 funds targeting $67 billion in committed capital, according to Preqin.

However, the interest in retail-specific real estate among investors doesn’t necessarily portend positive performance for all retail real estate properties in the coming year. E-commerce has been a tremendous economic disruptor across the country, causing many stores selling items or services that can be purchased online to suffer. Department stores, as well as sporting goods, hobby, book and music stores, experienced negative year-over-year retail sales as of the second quarter of 2018, according to the U.S. Census Bureau and CBRE Research, which also reported that the second quarter was the ninth consecutive quarter in which non-store retailers were the leaders in revenue growth.


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