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Retail Investment Hits High Mark with $482M During 2005

DENVER-According to a recent report, investors last year spent $482.4 million for retail properties. While that is a 20.7% drop from the record $582.7 million in sales during 2004, it is historically the second best year for retail investment.

By John Rebchook | Updated on March 08, 2006

DENVER-Investors last year gobbled up $482.4 million in retail real estate in the Denver area, according to a recent analysis by the Frederick Ross Co. While that is a 20.7% drop from the record $582.7 million in sales during 2004, it is historically the second best year for retail investment. For comparison, last year’s tally was 69% higher than the $284.9 million in sales in 2003, and more than 500% higher than the $78.6 million in retail sales in the Denver area in 2001.

Further, the average price per sf last year set a record of $143.63 million. The average cap rate also hit a new low, falling to 7.21% compared with 9.06% in 2004. Ross based its data on sales of $5 million or more.

It wasn’t for a lack of interest from investors that caused the dollar volume to fall last year from 2004, notes the report, rather the limited supply of properties. And that is fueling “a frenzy of interest in shopping center, tripe net investment and tenants-in-common opportunities,” the Ross study states.

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