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Kidder Mathews 2nd Quarter Retail Report August 2, 2011

Posted by Erik Swanson in Articles, Research/Data, Retail News, Retail Sales Comps.
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Below is the Kidder Mathews 2Q retail market report compiled by Andy Robinson in our appraisal department. The report details construction activity, retail sales, rent forecasts and highlights sales comparables for the first half of 2011.

The investment activity chart shows continued improvement in both deal volume and cap rate compression.

The full report is available by clicking here: Retail-Market-Research-Seattle-2011-2q.

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For Sale: Harbor Towne Center, Oak Harbor, WA July 21, 2011

Posted by Erik Swanson in Listings.
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Puget Sound Investment Review – July 2011 July 18, 2011

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Just Listed: 38th Street Retail Center, Tacoma, WA July 7, 2011

Posted by Sean Tufts in Listings.
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Institutional Retail Grab June 9, 2011

Posted by Sean Tufts in Articles, Blogs, Retail News.
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As previously discussed in recent blog posts, sales volume has significantly jumped this year in the retail sector led by institutions with a nearly unlimited and practically free capital source. Their focus on purchasing retail centers has done many things to retail landscape, most importantly by driving CAP rates down to unexpected levels. It continues to change the ownership profile across the country as private capital controls less and less product.

This has always been the case for large shopping centers but was less of a concern for the single tenant market, where private investors dominated. That has changed significantly in the last six months as the share of institutional ownership of single tenant retail assets grew from 5% to 25%.

Check out the article in National Real Estate for more detail.

 

 

For Sale: Marysville Investment Property – $1,163,000 June 1, 2011

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Just Sold: Eastway Center, Renton, WA May 27, 2011

Posted by Sean Tufts in Retail News, Retail Sales Comps, Sale.
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Puget Sound Investment Review – May 2011 May 17, 2011

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Costar: Rising Occupancy Should Bring Growth In Retail Rents By Year-End May 13, 2011

Posted by Sean Tufts in Articles, Blogs, Research/Data, Retail News.
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Costar provided the rosiest outlook for retail rents we have seen in a very long time with their latest article, “Rising Occupancy Should Bring Growth In Retail Rents By Year-End”. The title alone provides a warm and fuzzy feeling for any owner or broker that deals in retail real estate. With rents falling an average of 35% from their peak this is very welcome news and provides some hope for a future recovery.

The recovery is obviously further along in specific areas, especially the Northeast, where “Retail sales have already returned to 2007 levels, with year-over-year growth in the 6% range for the last couple quarters — well above the historical range of 4.5% to 5%”. That may be true out East, but we have yet to feel the rebound. Below is a chart of taxable retail sales in the state of Washington. It does appears to have leveled off and based on the sales reports of the area’s major retailers (Costco, Nordstrom, etc) we expect the Q1 numbers to show further signs of improvement.

Year Total Taxable Units
2010 Annual $100,808,236,059 186,652
2009 Annual $100,879,383,855 185,254
2008 Annual $114,007,928,210 188,124
2007 Annual $118,957,667,480 190,003
2006 Annual $111,442,431,996 187,340
2005 Annual $102,154,111,438 185,348
2004 Annual $93,440,674,067 180,206
2003 Annual $87,664,282,658 174,629
2002 Annual $85,368,356,296 169,471
2001 Annual $84,913,896,471 165,756
2000 Annual $85,344,751,728 166,217

Activity on the leasing side has picked up since the beginning of the year, led primarily by national tenants that have realized that the window is likely closing on sweetheart deals at the bottom of the market. With basically zero in the construction pipeline we expect that it will not be long until the vacancy rate starts to inch down and we finally see some upward pressure on rental rates. We will still lag behind the East Coast and rent growth is unlikely to occur any time before next year but we absolutely appreciate the optimism!

Here is the full article for your weekend reading pleasure!

Costar Repeat-Sale Analysis April 21, 2011

Posted by Sean Tufts in Articles, Research/Data, Retail News.
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This report is becoming one of my favorites to help decipher the mass of information that floods my inbox every week. The report does an excellent job of breaking down geographical and sector differences. The graph below is an excellent example of that:

As you can see the West Coast and retail in general are well off of their 2007 peaks. I highly recommend downloading the entire report, which can be found here (CCRSI-April2011) as it provides much more data.

Sales volume continues to climb from the depths, increasing 19% from the same month last year. Distressed sales accounted for one in five total sales during this period. Based on what we are seeing on the ground, we expect that percentage to drop as more stabilized product traded hands in March 2011 than we have seen in the last 3+ years.