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Prices for retail assets are climbing in the Inland Empire. Spruce Plaza, a new construction class-A shopping center, recently traded hands for $1,005 per square foot and a 5.32% cap rate, a record in the market according to industry sources. While this is record-breaking pricing, the trade wasn’t an anomaly. Pricing has been steadily escalating in the market as other asset classes—especially industrial—have helped to fuel job and population growth.

“This higher pricing, and particularly higher per square foot, is a trend we’re seeing with quality assets in well-located markets,” Matthew Mousavi, group managing principal at SRS National Net Lease Group who brokered the Spruce Plaza deal, tells GlobeSt.com. “This is due in part to the increasing costs of land and construction borne by developers in higher quality locations. This is also a reflection of the increasing rents that certain tenants are now more willing and able to pay.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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