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Retail Segment Going Strong: C&W Reports

NEW YORK CITY-While the industry has been taking a nosedive lately, retail transactions have actually been on an upward slope.

By Diana M. Rodriguez | Updated on May 01, 2003

NEW YORK CITY-With interest rates high and the stock market shaky, investors have been turning to real estate in recent years, particularly impacting the retail segment. According to Cushman & Wakefield managing director of retail valuation Richard W. Latella, retail property investment in 2002 totaled $24.5 billion, a 123% increase over the previous year, and 2003 is already moving in the same positive direction.

“Investment in retail real estate has been rising and we expect it to continue throughout 2003,” says Latella, adding that the drop in cap rates for the retail segment over the past 12 months demonstrates its ability to attract new capital and buyers looking to diversify their portfolios.

In addition, Real Capital Analytics reported that sales activity involving regional malls jumped tenfold last year to $11.5 billion. Seventy percent of those mall transactions were completed by REITs, which are expected to continue as frontrunners in these retail acquisitions.

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