March 30, 2007 - April 05, 2007
Provided by Commercial Real Estate DirectChicago Loop Retail Market Remains Strong
The Chicago Loop’s retail market is expected to stay strong as vacancies continue to fall and rents rise, according to a report from Stone Real Estate Corporation, a Chicago real estate firm. The Loop’s retail vacancy rate dropped to 14.6% last year from 16.7% in 2005 and Stone predicts the numbers will continue to fall in 2007 as retailers demand more Loop space.

Los Angeles Area Apartment Rents on Rise
Apartment rents jumped across Southern California last year as vacancy rates continued to tighten last year, according to a report by the Lusk Center for Real Estate at USC. Apartment occupancy rates now top 97% in nearly all submarkets of Los Angeles County, including the San Fernando Valley. Rents increased throughout the county by 5.6% in 2006.

Retail Rents Skyrocket in Toledo
Asking rents in retail space shot up nearly 40% in Toledo, OH, according to experts on the region’s commercial real estate market. New retailers are expected to enter the area in 2007, including California’s Del Taco, Starbucks which currently has two stores under development and Chipotle Mexican Grill. Retail rents increased from $2.03/sf in December 2005 to $9.17/sf at the end of ‘06.

Asking Rents Skyrocket in Downtown Denver
Tenants will find better leasing deals in downtown Denver’s second tier office buildings, according to a report by Studley. The firm’s Q1 2007 report found that downtown rents have skyrocketed by more than 28% during the past year. In addition, rental rates in Denver’s central business district have jumped to $25.68/sf in Q1 2007 from $20.78/sf in Q1 2006. The report cites the influx of new investors among the reasons for the increasing rental rates.

Downtown Detroit Seeks More Retail Tenants
The Downtown Detroit Partnership plans to aggressively target retail tenants. The firm released a study that maintains Detroit could support a grocery store of more than 125,000 sf. Currently, no store in downtown Detroit is larger than 10,000 sf. Additionally, the report found the average income of downtown residents is $59,300, 33% higher than the previous census data.

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