Hot, Hot Summer for Retail Trades
Jim Hanas Sept. 24, 2010, 3 p.m.
It was a hot, hot summer for retail trades. Both deal volume and sale prices for retail space spiked in August, according to research by CoStar.
Around the country, the average purchase price for a slice of retail space soared to $170 a square foot, from just over $140 a square foot in July, according to CoStar data provided to Bisnow. Prices hovered around $120 a square foot at the beginning of the year. Investors are paying a premium right now for properties that are in good financial shape, CoStar economists said.
A lot of investors are still hovering on the sidelines, waiting to see if the economy will improve, according to the report. But deal volume was still way up in August, over $4 billion.
One in five sales were of distressed property, says the report.