Retail market shows improvement | Commercial Property ...

Posted on: September 5th, 2012 by admin@cpp

The retail real estate market improved during the first half of the year, and this was punctuated by rental growth.

Overall, the largest markets around the country had the most impressive gains, which was mostly due to growth in populations, higher leasing volumes and still-low supply levels. At the end of the second quarter, the rent level for retail properties declined by less than 2 percent compared to the same period last year, according to World Property Channel, citing a recent industry report. However, it was nearly unchanged during the second quarter.

The Southeast experienced stark improvements in some areas, which could mean positive things for Atlanta commercial real estate property. Miami had a more than 13 percent growth rate from April through June when compared to the same period in 2011, the report noted. Both Washington, D.C., and Tampa had positive quarters, as well.

Due to the recession sending some of these areas down further than the country's average, these areas are able to make up more ground than most, the report explained.

"The retail [real estate markets that experienced] the biggest falls were Florida, Las Vegas and Phoenix," analyst Greg Maloney told the news source. "Now, as we see a recovery, they are outpacing places like [cities in the] Midwest."

Washington, D.C., experienced a rental rate improvement of nearly 3 percent during the quarter, the report said. The reason for the district's improved levels was cited to be the improving economy. Tampa witnessed an improvement of nearly 2 percent during the second quarter when comparing year-over-year figures, and much of this could be due to the area's room for extra commercial space.

Maloney added that the retail real estate market has not completely recovered, but it has made some marked progress. He noted that business owners may need to give developers further encouragement to get more construction underway in some areas. This may take up to two years to get into full gear.

In the meantime, the report added that rental rates should improve over the next few years. Raleigh rents could rise by 4 percent on an annual basis in the next four years, while Phoenix's projected figure was slightly more than that. Finally, Las Vegas rents may jump by as much as 9 percent by 2015.

If you own or are considering a commercial building purchase or lease, contact Daniel Levison or Furman Wood of Commercial Property Professionals.?They can be reached at 404-848-1776.

Source: http://www.cpprofessionals.com/cre-news/retail-market-shows-improvement-22200

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