Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/109754
T H E B O T T O M L I N E 2012 deals up 20 percent: Report U.S. retail property investment deals rose by 20 percent year on year for 2012, to $52.8 billion, according to Real Capital Analytics. Investment volume surged 54 percent year on year in the six biggest U.S. markets. Some 4,400 transactions were priced at $10 million or higher. Exactly 117 regional mall properties valued at a combined $24.2 billion traded hands, up 172 percent from 2011. The average price paid for a U.S. mall last year was $237 per square foot, and the average cap rate was 7 percent. For strip centers, the price average was $145 per square foot, and the average cap rate was again 7 percent. One-year return NOI rises 3.6 percent at U.S. retail centers in 2012 30% SNL U.S. REIT Equity 25 SNL U.S. REIT Retail 20 U.S. shopping centers boosted their net operating income Russell 3000 last year by slashing expenses and improving sales, ac- 15 cording to data from ICSC and the National Council of Real Estate Investment Fiduciaries. 10 Overall NOI at American shopping centers grew by some 3.6 5 percent year on year, according to NCREIF's database 0 of 1,000 retail centers. In the aggregate, their income Ð5 rose 2.3 percent last year against 2011, while expenses 1/12 3/12 5/12 7/12 9/12 11/12 1/13* SOURCE: SNL FINANCIAL * As o f 1/23/2013 eased by 0.1 percent. "The U.S. shopping center industry as a whole performed U.S. Shopping-Center Industry Performance well in 2012, but regional malls and community centers (dollars per square foot) were sector laggards," said Michael P. Niemira, ICSC's ANNUAL chief economist and senior vice president of research. 2010 Total operating income % change from prior year Total operating expenses % change from prior year Net operating income % change from prior year 2011 2012 Power centers showed the most strength, with 9.1 percent NOI $24.68 $23.81 $24.36 growth between 2011 and 2012. Regional malls were +2.9 –3.5 +2.3 the only sector whose NOI per square foot fell between $8.44 $8.13 $8.12 2011 and 2012, with a 3 percent tumble. Neighborhood +5.5 –3.7 –0.1 centers grew 8 percent, super-regional malls grew 2.4 $16.24 $15.68 $16.24 +1.6 –3.4 +3.6 percent and community centers grew 0.5 percent. ICSC Research anticipates continued NOI improvement this SOURCE: NCRIEF Deal Barometer W H O I S year on improved sales. P A Y I N G H O W M U C H F O R W H A T DEAL OF THE MONTH $37 million $60.5 million $205 million $1.1 billion $1.5 billion $1.9 billion $3.1 billion Mobile, Ala.–based Burton Property Group bought the 360,000-squarefoot Jubilee Square Shopping Center, in Daphne, Ala., from L-A Daphne LLC Phillips Edison-ARC Shopping Center REIT bought six grocery-anchored centers in the Greater Atlanta area. The portfolio comprises nearly 508,000 square feet and has five Kroger stores and a Publix as anchors Cole Real Estate Investments bought The Plant, a 650,000-squarefoot center in San Jose, Calif., from Vornado Realty New York City– based private equity fund Blackstone Group will buy a majority stake in 40 U.S. shopping centers, totaling 5.7 million square feet, from UBS AB property funds Cole Credit Property Trust II merged with Spirit Realty Capital. Cole Credit will hold 56 percent of the merged entity, which will own 2,012 properties with a market value of some $7.1 billion. Spirit Realty will manage A consortium of investors including KingSett Capital, the ONtario Pension Board and RioCan REIT will buy 18 Canadian retail centers from Primaris REIT Toronto's H&R; REIT will buy 25 Canadian retail centers from Torontobased Primaris REIT 58 SCT / M A R C H 2 0 1 3