The Vegas Vibe
Year
June 23.2014
The ICSC frenzy was in full throttle mode during our annual Vegas Road Show. A forum of in-depth dialogue from talks of tenant turbulence to the Online debate over Clicks versus Bricks, to be discussed in our weekly series of Simon Says. Having hosted 45+ meetings in the private rooms of Marcus & Millichap’s booth with real estate masters from all over the country, many weighed in with mixed opinions.
The roadmap to RECON was not the same show of old but rather a newfound renaissance of reality. Trade show attendees spoke of uncertainty in the air but countered with CAP rate compression that has let to a robust resurgence, for net leased deals and shopping centers. Rising interest rate dialogues somewhat reverberated against the optimistic outlook from meeting to meeting. Investors seem to be closely watching the coveted 10-year Treasury Yield, a tell-tale leading indicator of coinciding CAP Rate movement, currently hovering in the 2.5% range.
Not much mention of tension abroad. Yet the rest of the world continues to watch as the Vladimir Putin prerogative still depicts a geopolitical landscape spotlighted by Russia/Ukraine tensions again heating up as sanctions surge. Both lack of GDP growth and tumult abroad and dictating global investment drivers towards buying treasuries in a flight to quality. The lending segment shared positive sentiment at ICSC and draws a parallel to the Mortgage Banker’s Annual Conference held months prior. A gathering of 58 different lenders to include Banks, Insurance Companies, CMBS Lenders, and Bridge Lenders. Consensus spoke to a very positive and energetic conference at CMBS/Insurance Lenders are coming back full fledge with a propensity to take on larger deals.
What this Means to You:
The big show Vegas Convention is a seasonal high tide of investment arena activity. The hunting season is peaking and deal making is piggybacking the momentum we tend to see throughout the year following post ICSC. Ride the wave.
“What separates the winners from the losers is how a person reacts to each new twist of fate” – Donald Trump
