Retail

The retail market is returning to pre-recession levels. Retail sales in the U.S. totaled an estimated $5.321 trillion during 2014, compared to $4.0 trillion during 2009. Retailer concentration and sales per square foot have trended upward, especially in larger markets, as a result of increased consumer confidence and spending.

Encore Commercial considers multiple factors in its acquisition criteria, including:

  • Proximity to a top 75 market in the nation by population.
  • Positive market occupancy variance with low future supply where there is a void for additional expansion.
  • Trade Areas with Average Household Income of $70,000 or greater.
  • Void for top market anchors based on need in the market.
  • Strategic location within an established retail corridor in the market.

Office

The office market is experiencing significant positive growth. Vacancy dropped to 10.9% over the first quarter of 2015, close to pre-recession 10-year lows, and net absorption was positive. Rental rates have picked up in recent months, currently pegged at an average of $22.74, an increase over Q4 of 2014. Development and completion of new buildings increased to 244 locations constructed, compared with 237 in the previous quarter.

Encore Commercial considers multiple factors in its acquisition criteria, including:

  • Targeted markets with high concentrations of well educated, office-using employment.
  • Submarkets where office using demand growth is forecasted to outpace supply growth over the foreseeable future.
  • Class “A” quality, multi-tenant designed properties that are less than 30 years old.
  • Close proximity to desirable tenant amenities.
  • Favorable ingress and egress to primary transportation routes.
  • No individual tenant should comprise more than 25% of the total revenue generated on any particular property if their remaining lease term is less than 10-years.