Further, the average price per sf last year set a record of$143.63 million. The average cap rate also hit a new low, fallingto 7.21% compared with 9.06% in 2004. Ross based its data on salesof $5 million or more.
It wasn't for a lack of interest from investors that caused thedollar volume to fall last year from 2004, notes the report, ratherthe limited supply of properties. And that is fueling "a frenzy ofinterest in shopping center, tripe net investment andtenants-in-common opportunities," the Ross study states.
"Investor demand for retail properties has remained nearlyinsatiable over the past five years," says Frank Griffin, managingdirector of Ross. "This demand has been augmented by the relativestability of vacancy which has ranged from about 7% to 9% over thatsame period."
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