Retail Values Hold Up in Downturn

CHICAGO-Despite a slowdown at cash registers, values of retail properties continue to remain strong here, says Marcus & Millichap Real Estate Investment Brokerage Co. senior vice president and regional manager Greg A. Moyer. While there are signs the economy is pulling out of the its slowdown, values should continue to rise, Moyer predicts.

“Retail vacancy inched upward and rents have softened slightly, but demand will remain strong for solid properties,” Moyer says. “Construction should slow in response to tighter lending requirements and a general caution in the market regarding retail properties, which should bode well for the long-term health of the retail market.”

However, this year’s average of $89 per sf follows a “somewhat lackluster year in 2000,” according to the report prepared by Marcus & Millichap senior market analyst Frank J. Kupiec.