from GlobeSt. Features
The properties have to be the right type though, and lenders are tighter than they once were.
By Erik Sherman | May 06, 2022 at 07:00 AM
It’s been almost two years since the pandemic rolled in and many wondered whether retail could survive shutdowns, fear of contagion, and an explosion of e-commerce.
Now, after online buying hit a peak of 15.7% of all retail in the second quarter of 2020, it’s now back down to 12.9% with a continuation of its older growth rates…
However, experts say that it’s specific areas of retail that are hot, with some older standbys cooling heels off in the corner. And lenders, while active, still show some signs of wariness…
…Remember, too, that “lenders lend against retail collateral,” Harold Bordwin, principal and managing director of Keen-Summit Capital Partners LLC, says. “The valuation is the valuation of the inventory, the stuff on shelves. As a company is getting more financially distressed, those appraisals are really focused on what is the value of that inventory in a [going out of business] sale.”