Summers' time

Ben Summers

Expectations for the single tenant retail market remain positive despite cooling economic growth and lingering concerns over the housing slowdown, according to Marcus & Millichap's first half 2008 retail research outlook. "Retail sales are expected to advance at their slowest rate since 2001 as fewer homeowners tap home equity lines of credit to finance large purchases. Consumer spending will decelerate the most in markets that are severely impacted by housing and employment related weaknesses. Grocers will likely continue to record steady sales growth as consumers curb casual dining, although traditional restaurants could feel the effects of slower economic growth and reduced leisure travel. Drugstores are forecast to post steady returns, and operators that choose to open in-house clinics could outperform this year."

A modest increase in retail space demand, along with a decline in completions, will support a slight vacancy decrease in Fairfield and New Haven counties this year. Marcus & Millichap say vacancy will register in the high 4% to low 5% range in Fairfield County's most affluent communities. Shopping centers and strip centers in Stamford and Greenwich likely will post very low vacancy, as high incomes will sustain a healthy level of consumer spending. Vacancy in the county's less affluent communities will trend higher, as will the vacancy rate for older properties in New Haven County, which is forecast to tick up to 9.2% this year.

Living is like constructing a building: if you start wrong, you'll end wrong. Willie Bady Jr., builder/developer