Skip to main content

Why should you invest in retail?

Investment in the commercial real estate retail market is in fashion. The next three to four years offer an unprecedented opportunity to generate passive income and generational wealth in the retail sector.

The Value Proposition

This is a rare opportunity to capitalize on the perfect storm.

The next few years will offer a phenomenal opportunity to create wealth in the retail investment space. Here is what you might miss if you do not invest:

x-icon

Steady, higher than average returns...

You will stay one step ahead of interest

Learn More

x-icon

Stakes Bullet Label

Mauris purus urna, dictum non cursus et, congue et felis. Suspendisse porttitor mi et eros luctus suscipit.

Learn More

x-icon

Stakes Bullet Label

Mauris purus urna, dictum non cursus et, congue et felis. Suspendisse porttitor mi et eros luctus suscipit.

Learn More

placeholder-image-template-1

The Opportunity

The shopping center sector is having a moment. And you don't want to miss out on it.

Retailers that survived the Amazon Effect, along with COVID-19, are growing rapidly. The strong who survived have shown that even retailers with the strongest eCommerce strategy have realized the importance of a robust brick-and-mortar presence to sustain growth.

But it doesn't stop there. There is an estimated $50 billion worth of insolvent debt coming due in the enclosed mall space over the next three years. This creates an extraordinary opportunity to acquire low-risk, high-upside properties at a fraction of their intrinsic value.

Let's face it. Rumors of retail's demise have been greatly exaggerated. This is your opportunity to capitalize on the fact that not everybody knows about it. 

Start Investing
checkmark-icon

The time is now!

Several factors have come together to make NOW an incredible time to create legacy wealth in the retail sector. 

checkmark-icon

Slow and steady builds a legacy

By focusing on low-risk investments with high upside, you can look forward to years of passive income rolling in.

checkmark-icon

50 billion reasons to invest in retail

With an estimated $50 billion in insolvent debt coming due in the enclosed mall sector over the next three to four years, there will be remarkable opportunities to acquire low risk/high reward investment properties. 

Why is Now the Right Time?

All the factors are lined up to make the shopping center sector a safe bet for investors looking to create a steady flow of passive income.

A maturing eCommerce market, brands who have proven they can stand the test of time and a flurry of low risk, high reward investment opportunities set to hit the market over the next three or four years are only a few of the reasons the retail sector has so much upside.

Amazon Effect Maturing

  • Amazon and COVID killed most of the weak retailers.
  • Survivors are growing and have strong balance sheets.
  • Physical, brick-and-mortar stores provide the lowest cost way to acquire new customers.
  • Retail looks good compared to other real estate sectors.
why-retail-amazon-effect

Historically Low New Retail Development

Over the past 13 years, new retail development has reached a historical low due to high construction costs. Retail remains the lowest of all commercial real estate sectors at half a percent of shopping center construction growth per year.

This lack of supply is driving up the value of second-generation space, which creates a tremendous opportunity.

why-retail-low-development

Low Space Availability

“The 10 consecutive quarters of demand growth have pushed the retail market into its tightest position in nearly 20 years. There is less space available for lease now than at any point since national tracking began in 2006.”

- CoStar Group, Q3 2023

why-retail-low-space-availability-v2

Retail Remains Incredibly Strong

Retail is the only major real estate sector that experienced a decrease in vacancy in 2023. 

Industrial, Office, and Multifamily all experienced significant increases in vacancy.

why-retail-retail-remains-strong

Store Closures Near Historic Lows

The Amazon Effect, followed by the global pandemic in 2020, had a major impact on store closures. 

Over the last three years, store closures have leveled off and now are sitting below the historical average. 

why-retail-store-closures
Where we invest

We Invest in "HomeTown" Markets

We invest primarily in secondary and tertiary markets where we can buy credit-quality cash flow at lower prices compared to the major metros. 

These "hometowns" have a community spirit different than larger markets that allow RockStep to bring in local investors, reducing risk during the life of the asset.

RockStep is able to identify local investors and business owners who care about their community and want to invest with somebody who can bring capital and expertise to assets that affect quality of life.

^^ WATCH VIDEO ^^

where-we-invest

What is a HomeTown?

WHY HOMETOWNS

Benefits of Investing in HomeTowns

checkmark-icon

Lack of Institutional Competition

Deals are too small for larger investors to bother with.

checkmark-icon

Community Buy-in

Local leaders, investors, and lenders are committed to building thriving communities and are eager to partner with groups that have expertise and the capital.

checkmark-icon

Virtually No New Supply

There is less concern about new supply coming into the market due to high construction costs and the ability of the market to absorb new square footage.

checkmark-icon

High Cashflow

You get the same cash flow and tenant credit quality at a lower price.

checkmark-icon

Ability to Acquire Multiple Assets

It’s much easier to acquire additional properties within the market, which provides you with the ability to have greater control of rental rates.

Why HomeTowns Want to Partner with Us

Start Investing
checkmark-icon

We’re Experienced Operators

Working closely with a group led by someone whose family has been in the retail space for nearly 100 years gives them confidence that we will execute.

checkmark-icon

Aligned Mission and Values

We are a mission-driven company with a strong management team focused on revitalizing hometowns. That is unique and is immediately recognized by them.

checkmark-icon

Access to Outside Capital

Finding someone willing to infuse outside capital into their communities is challenging. Investing our capital alongside theirs helps them accomplish their goals and objectives that wouldn’t be possible otherwise.

checkmark-icon

Tenant Relationships

HomeTowns want access to the same retailers, restaurants, and entertainment options larger cities have. We can help attract those tenants.

We have strong relationships with most of the fastest-growing retailers in the country

The 3 Step Plan

Get Started

You can learn a lot about the RockStep Way by reading the content on our website. Once you do that, the next step is to schedule a call with one of our retail real estate investment experts.

If not now, when?

Why is this such a good time to invest in shopping centers?

All the factors are lined up to make the retail sector a place for investors looking to create a steady flow of passive income.

A maturing eCommerce market, brands who have proven they can stand the test of time, and a flurry of distressed investment opportunities set to hit the market over the next three or four years are only a few of the reasons the retail sector has so much upside.

You can reach out to us and discuss this opportunity to build generational wealth with our President, Andy Weiner. 

^^ WATCH VIDEO ^^

why-opportune-moment

FAQs

Below are a few frequently asked questions investors have about investing passively in the retail sector.

What types of retail properties do you buy?

Aren't shopping malls "dying"? Why do you buy them?

What do you do to increase the value of the properties after you acquire them?

What are the significant risks involved when purchasing shopping centers?

Why do you buy properties in "HomeTowns" instead of the major markets?