Despite U.S. Economic Downturn, Local Property Values Are Strong
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| Quality small to mid-size retail centers and supermarket-anchored shopping centers remain in demand. Recently, the retail team at Boston-based NAI Hunneman Commercial brokered the sale of three freestanding CVS Pharmacy locations in Cape Cod and Brockton for $9.2 million. The sale is a sign of continued investor interest in freestanding and long-term leased retail properties in the region. |
By Bob Tito and Jonathan Aron
With the ongoing credit crunch, job losses, the wobbly U.S. economy and growing nervousness in the commercial real estate industry, some savvy investors have started to re-examine the strength of the traditionally stable retail investment market in eastern Massachusetts. The question on everyone’s mind is: How strong are retail real estate fundamentals today and how is the current credit crunch affecting the value of retail properties, and therefore their demand in the region? The short answer is that despite the general slowing down of the economy and declining consumer spending, retail real estate fundamentals remain solid. It’s the perception of a weaker market and the perception of declining real estate values that is causing anxiety among investors.
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