Have appraisers been too bullish on retail real estate?

Appraisers of retail real estate have come in for criticism for excessive bullishness. Media commentary has fixated on the shuttering of shops, while retail-focused real estate investment trusts are priced at substantial discounts to the value of their assets. Against this backdrop, many question whether appraisers are overvaluing retail properties. But MSCI data on transacted assets suggests that appraisers haven’t been over-optimistic on the retail sector; and, if anything, they appear to have appraised retail assets more accurately than other property sectors — industrial real estate, in particular. Countering some commentators’ scepticism, assets transacted during 2018 (across all sectors, including