"Solid operations and excellent fundamentals continue to entice investors to buy retail properties over other property types," says Thomas H. Hershey, a senior market analyst at Marcus & Millichap. "Strong appreciation will support sustained buyer demand for most single-tenant net-lease product."

Hershey says that, "while not quite near the record level posted in 2003, transaction velocity has remained strong, with sales of less than $5 million accounting for 95% of all single-tenant deals in 2004. Despite expected bumps in interest rates, demand for retail will remain strong, as sales encourage retailer expansion and single-tenant net lease assets to continue to outperform other property classes."

In the over-$5 million category, the 107,127-sf Longwood Shopping Center in suburban Longwood, FL sold for $8.83 million or about $82.38 per sf. Garshing Properties LLC bought the property from Fashion Dyers & Finishers Inc. The Crossings, an 18-year-old, 108,264-sf center on South Orange Blossom Trail near the 1.8-million-sf Florida Mall, went for $7.5 million or $69.27 per sf. The Courtelis Co. of Miami sold the asset to Orlando Crossings Inc., a private investment group.