Price Edwards Retail Investment Team Announces Second Quarter Market Statistics

Retail investment sales were quiet in the second quarter with one big exception, The Outlet Resource Group's $128.6 million purchase of the Outlet Shoppes of Oklahoma City. Re-branded OKC Outlets, the property is a specialty use property that is the only outlet mall in Oklahoma City. TORG plans to make some improvements to the mall and continue to tweak the tenant mix. The only other sale of a greater than 25,000 square foot property in the quarter was the 31,200 square foot, Willow Creek. Otherwise, the uncertainty that characterizes the broader retail economy appears to have also affected investment sales. There remain significantly more buyers in the market than sellers. As part of a countrywide trend, one group of buyers, the larger institutional real estate firms, have generally not bid on the last couple of institutional grade properties in our market, resulting in an at least 100 basis point increase in capitalization rates for class A properties. This trend may open the door for more local and regional investors to buy up in quality. Expect the current turbulence retailers are experiencing to create opportunities for these retail investors.