Unlike institutional players, TIC investors want passive income and long-term holds, which works better for the types of deals Investors Management Group pursues, says the firm’s founder.
Buyers are beginning to ask for discounts and some deals fall through. But experts say the disturbance in the sector is based on “short-term uncertainty.”
As the larger tech sector has experienced a valuation reset, venture capital investors in proptech are taking a much more careful stance, wanting to see a clear path to profits.
With a shrinking delta in cap rates between assets of different vintage, many investors opt to go with lower risk newer properties and fewer capital expenditures.
The next few years are set to see a significant ramp-up in new outlet center construction. But outlet center tenant mix is changing to reflect a new focus on experiences.
Rising rates and inflation are making it hard for foreign investors to assign correct valuations to assets. But experts say those are temporary setbacks and cross-border investment will rebound.