Helberg Quote in Article Still in a Period of Consolidation
We’re still in a period in which some larger tenants are closing locations and leaving some markets, or they are remaining in a market but consolidating. At the same time, other national users for these spaces are starting to express interest in expansion, however often at significantly reduced pricing from what the previous tenant paid. They are interested in taking advantage of space that is substantially built out for their use already.
Of course the dollar concept [stores] are the strongest expansion users, but sometimes other competitors in the same category may want to enter a new market if they see someone leaving it.
Liquidity is getting a bit better for the smaller investors, but the pendulum is still shifted much more on the “conservative” lending practices. Lenders may bend a bit more if there is an opportunity to build a longer-term relationship with a client and add some deposit account versus a “one-and-done” borrower.
Tom R. Helberg, principal of Bellevue Investors Co. in Sylvania, OH
Originally posted in CoStar Newsletter Article