Retail Property Prices Climb

LOS ANGELES-Prices for retail properties in Los Angeles rose from 10% to 15% in 2003, depending on the type of property and the submarket in which it was located, according to a new report from Marcus & Millichap.

The report lists median price increases in 2003 of 15% in the San Fernando Valley, 13% in West Los Angeles locations, for example. Overall, the median price for single-tenant properties in the county increased in 2003 by 11% to $210 per sf, while the median price for shopping centers increased by 10% to $149 per sf. Downtown shopping centers rose from $104 per sf in 2002 to $185 per sf in 2003. Over the last year, shopping centers in the Westside cities have increased in value by 13%, to $225 per square foot. Valley shopping centers increased in median price by 15%, to $160 per square foot.

The new M&M report also indicates that the local retail market will improve in 2004 as the rebounding economy spurs increased consumer spending and retailers move forward with expansion plans.