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CHICAGO-Retail properties have bucked the commercial real estate trends, as investors have continued to pour more money into them for six consecutive quarters through the first half this year, according to CCIM/Landauer Investment Trends Quarterly. At the other end of the spectrum, just 3.9% of the dollars spent on commercial real estate in the second quarter went into hotels, a sector that CCIM/Landauer says remains flat.

The report follows an Institute of Real Estate Management study that found open shopping centers seeing a slight increase in income to $11.13 per sf, while expenses dipped slightly to $3.07 per sf. Meanwhile, occupancy remained relatively stable at 97%, according to IREM’s new benchmarking study.

Far from its peak of 36% in the middle of 1998, shopping centers still drew 21.8% of the investment dollars in the second quarter, according to CCIM/Landauer Investment Trends Quarterly. Although office properties still commanded 41% of the pie, retail outpaced the multifamily sector, which drew 20.3% of investment dollars.

“Investors are shifting property-type preferences to add weight to apartments and retail facilities–beneficiaries of historically better risk-reward relationships,” says CCIM Institute president Barry Spizer, CCIM. “On the other hand, the share of total investments for offices, industrials, hotels and land has declined in the face of user demand retrenchment in those sectors.”

Capitalization rates remain in single digits, according to CCIM/Landauer Investment Trends Quarterly, with a slight drop to 8.7%. That rate has been under 9% since the beginning of 2003.

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