The report lists median price increases in 2003 of 15% in theSan Fernando Valley, 13% in West Los Angeles locations, forexample. Overall, the median price for single-tenant properties inthe county increased in 2003 by 11% to $210 per sf, while themedian price for shopping centers increased by 10% to $149 per sf.Downtown shopping centers rose from $104 per sf in 2002 to $185 persf in 2003. Over the last year, shopping centers in the Westsidecities have increased in value by 13%, to $225 per square foot.Valley shopping centers increased in median price by 15%, to $160per square foot.

The new M&M report also indicates that the local retailmarket will improve in 2004 as the rebounding economy spursincreased consumer spending and retailers move forward withexpansion plans.

Lane M. Schwartz, regional manager of the firm's Los Angelesoffice, says the strong housing market and low interest rates areamong a number of positive economic factors that have contributedto steady consumer spending. Other factors include expectedincreases in job formation this year and increased leasing thatwill further reduce retail vacancy rates.