Burnham's latest market assessment pegs year-to-date sales atnine in comparison to the 21 transactions last year when sellersreaped $58.2 million and a median price per sf of $93. Last year,anchored centers brought a high of $142 per sf and a low of $76 forsellers. Still, the stats can't match 1998, when San Diego Countyretail property fetched $353 million from buyers and the medianprice was $114 per sf.

Rick Puttkammer, Burnham's managing director, predicts saleswill increase by the fourth quarter. "However, it will take until2002 before sales will reach previous year's level of activity," hesays. San Diego retail, they say, has a stronger upside potentialthan many parts of the nation. Cap rates varied between 9% and10.25% in the region.

Grocery-anchored centers reflected the lowest cap rate, comingin at a 9.37% average. What investors fail to recognize is SanDiego County's retail cap rates of NOI are actually higher than itsother commercial real estate counterparts.

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