Cushman & Wakefield's Financial Services Group of Robert E. Griffin, Jr., Geoffrey Millerd and Ryan Cox represented the Youngstown, OH-based Jonlee Southbridge and procured the buyer in the transaction.

The deal is indicative of the state of Greater Boston's retail market, where all types of investors are looking to sink their money into these types of properties. "Retail is in greater demand by all types of buyers than ever before," Millerd, a senior director at Cushman & Wakefield, tells GlobeSt.com. "It's not just private investors, but also institutional buyers and REITs now."

Millerd notes that the pricing for the centers is also better than it ever has been, noting that the cap rates are lower now. He attributes the recent trend to a number of reasons including the fact that debt markets are favorable now so an investor can get advantageous leverage on the properties. Also, the office market is very weak, making it difficult to find quality properties in that market. "There is a lot of equity chasing real estate in general," points out Millerd, "and the stock market is anemic so there is a lot of competition [for property]."

Retail is traditionally a healthy market, says Millerd, and in general the occupancy rates in New England are very healthy, with many areas getting as high as 95%. Supermarkets, in particular, are nearly recession proof, according to Millerd. "Supermarket-anchored centers are in the highest demand of all market types," he says.

Prices for the centers vary, but Millerd says that in general, the properties are commanding over $125 per sf for a good supermarket-anchored strip center. These centers are getting rent of about $15 to $16 per sf on average. Older centers that still have quality tenants are getting between $5 to $6 per sf. "Now is a good time to sell [these centers]," Millerd adds.

Instant Insights /

Continuing Trend, 113,000-SF Shopping Center Sells

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