Completions are expected to total 4.6 million sf this year, down 10% from 2004, Marcus & Millichap says in its recent retail research report. Meanwhile, major retailers are in the market for nearly 68 million sf of space, says Oakbrook Terrace-based Mid-America Real Estate Corp. principal Jeff Kuchman, up 7% from last year.

Discount grocery and discount department stores are leading the demand for space, according to Mid-America Real Estate's retail demand study. Wal-Mart's supercenter and traditional store concepts could create more than 5 million sf of demand, the report notes. Lowe's Home Improvement's aggressive expansion plans has the chain in the market for more than 4 million sf, Mid-America Real Estate reports, which has stimulated rival Home Depot.

Marcus & Millichap points to CVS' local battle against Deerfield-based Walgreen's as a factor in driving the median sales price of single-tenant assets up 28% in the past year to $215 per sf. The firm notes a CVS store in west suburban Winfield recently commanded a $612 per sf price.