Record Retail Property Prices

Chanel SA is purchasing an 11,500-square-foot building at 400 North Rodeo Drive in Beverly Hills for $152 million, more than $13,000 per square foot — a record price for retail space in Los Angeles according to the Wall Street Journal.

“The deal is another sign of the strong interest among retailers and landlords in retail real estate in large urban areas with a dense population of affluent shoppers,” the article reports. According to Jim Costello, senior vice president at Real Capital Analytics, “that’s what people have been willing to pay for. … That’s where the millennials are. That’s where the consumers are.’”

The French luxury retailer also set a record for the highest price paid for any retail space in the U.S. when it paid more than $31,000 per square foot for space on Madison Avenue in New York. Three other sales in Manhattan have topped $14,000 per square foot, and prices for high-end retail space have topped prerecession peaks in many other cities.

From December 15, 2015 NAIOP Source – Click here to view article.

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