Blackstone Ups the Ante in Retail with $473MM Acquisition

In its second large move in the Retail Commercial Real Estate market, Blackstone (NYSE: BX) has agreed to purchase $473MM in shopping centers in Atlanta, Tampa, and Orlando from Equity One Inc (NYSE: EQY) .  This move marks the continued focus for Blackstone into the Retail market after their massive buy of 588 shopping centers in February for $9.4BB from Centro Properties Group.

This prompts us to ask the question, what does Blackstone see in the retail market as occupancy rates continue to flounder?  With most economic indicators pointing to a double-dip recession being likely, consumer spending is actually on the rise.  With spending increasing, if ever so slightly, this is a good sign that the general consumer is starting to think more positively about the US Economy and is looking to spend more.  Combine this with a decrease in the savings rate and an upcoming holiday season, this looks to be a good bet for Blackstone in the short term.

However, this upcoming holiday season points to several other interesting questions about the stability and resilience of retail properties long term.  As we have seen the rise in online consumer shopping from sites like Amazon.com (NYSE: AMZN) have been increasing at exponential levels, is this the best time to up the ante in traditional brick-and-mortar properties?