Many commercial real estate brokers and analysts here and across the nation tell GlobeSt.com that they've never before been so deluged with reports that suggest that the value of big shopping malls and other retail properties are poised for a solid increase -- or that prices have already peaked and will continue to tumble over obstacles that include a faltering economy and growing jobless rate.
In the past, the holiday sales reports by the nation's big retailers were a fairly good indicator of the retail property market's overall health. Solid levels of consumer spending not only point to underlying economic strength, but also tend to fatten the profits of property owners because many landlords base their rent on a percentage of their retail tenants' sales.
This year, however, major retailers are reporting mixed sales results. While retail giant Wal-Mart says its domestic sales on the Friday after Thanksgiving -- the unofficial kick-off of the all-important holiday sales season -- set a single-day record of nearly $1.3 billion, other retailers have recently reported sales declines of 5% to 10% from a year ago. Some have already started slashing prices further in order to lure more shoppers through their doors.
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