Location and necessity-based retail properties will drive investment demand.
ENCINO, CA — The outlook for single-tenant retail properties should improve through the remainder of 2008, as the economy is expected to gain some momentum in the second half, according to a Single-Tenant Retail Research Report for the second half of 2008 by Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm.
“The investment outlook for single-tenant properties is expected to be mixed throughout the rest of the year, with buyers becoming increasingly selective,” says Bernard J. Haddigan, (top right photo) managing director of the firm’s National Retail Group and its Net Leased Properties Group.
· Discounters/Big-Box stores: Sales velocity for discounters has remained fairly steady in recent months, although there is a wide disparity in pricing and cap rates depending on tenant quality. This trend is expected to continue as buyers remain focused on top-tier assets.
· Casual Dining: Casual dining restaurants continue to record solid performance in the past few months. Buyers continue to actively pursue casual dining restaurant properties, w
ith
current transaction velocity maintaining the pace recorded during the previous 12 months.
ENCINO, CA — The outlook for single-tenant retail properties should improve through the remainder of 2008, as the economy is expected to gain some momentum in the second half, according to a Single-Tenant Retail Research Report for the second half of 2008 by Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm.
Well-located, necessity-based retail properties, such as drugstores and gas stations, have continued to change hands while other assets are receiving few offers.
“The investment outlook for single-tenant properties is expected to be mixed throughout the rest of the year, with buyers becoming increasingly selective,” says Bernard J. Haddigan, (top right photo) managing director of the firm’s National Retail Group and its Net Leased Properties Group.Following are some of the most significant aspects of the Single-Tenant Retail Research Report:
· Fast-food restaurants: In an effort to weather the recent slowdown in consumer spending, fast-food franchises are turning to innovation and mergers to ignite sales growth.
· Discounters/Big-Box stores: Sales velocity for discounters has remained fairly steady in recent months, although there is a wide disparity in pricing and cap rates depending on tenant quality. This trend is expected to continue as buyers remain focused on top-tier assets. · Casual Dining: Casual dining restaurants continue to record solid performance in the past few months. Buyers continue to actively pursue casual dining restaurant properties, w
ith
current transaction velocity maintaining the pace recorded during the previous 12 months. · Drugstores: Investors are coveting these assets, as evidenced by cap rates remaining in the mid-6 percent range during the past 12 months and the median sales price increasing 13.2 percent to $342 per square foot.
· Groce
ry stores: Supermarkets may be one of the few segments to register any strength in sales going forward as consumers change their spending habits and decide to prepare more meals at home.
For a copy of the complete Single-Tenant Retail Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
ry stores: Supermarkets may be one of the few segments to register any strength in sales going forward as consumers change their spending habits and decide to prepare more meals at home.For a copy of the complete Single-Tenant Retail Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
Press Contact: Stacey Corso
Communications Department
(925) 953-1716
Communications Department
(925) 953-1716
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