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Retail Traffic: Investors Tap Cash on the Sideline as Sales Velocity Begins to Rise February 1, 2011

Posted by Sean Tufts in Articles, Retail News.
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We have definitely seen the bottom…at least from a volume perspective. Retail Traffic has an optimistic view of how 2011 will unfold as investors come back to retail.

In 2009, investment sales volume ground to a halt, but volume slowly built up throughout 2010. In the fourth quarter, nearly $8 billion in retail properties changed hands—the highest level recorded since the market crashed. Overall, retail sales during 2010 totaled $22.6 billion. It’s a step in the right direction, even if it amounts to just 27 percent of the $83.4 billion in retail real estate that sold in the industry’s peak year of 2007, according to New York-based real estate research firm Real Capital Analytics. (The firm tracks sales transactions valued greater than $5 million.) But observers expect that volume will rise in 2011. The most bullish predictions are that volume could double 2010’s total. That would put the industry on par roughly with 2004—before things got out of hand in the bubble years.”

Velocity in the Seattle market has no where to go but up as well. In general, our listings are getting more activity than they did in 2010 and we expect to see more sizable centers hit the market and trade hands this year. We are already tracking a handful of grocery anchored centers that we expect to sell early this year.

On a different topic, we sat in on our Office sales meeting this morning and it was unanimous that the tide has turned in the downtown office leasing market. A handful of notable lease deals, including Amazon and Dendreon, have changed the market completely. They agreed that when we look back that the last 30-60 days will be viewed as the turning point into a new cycle.

The full retail article article here.

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