la Frontera In the News

Austin Business Journal

January 14, 2004

Study: Austin's retail market second best in nation

Austin is the second strongest retail real estate investment market in the United States, according to data released Wednesday from Grubb & Ellis Co.

Atlanta, Austin and Phoenix top the list of retail real estate markets that will provide strong returns for investors over the next five years, according to Grubb & Ellis' 2004 national real estate forecast.

The strong outlook is based on the rapidly growing population in these cities, according to Grubb & Ellis data. Strong consumer spending and a housing market fueled by low interest rates have kept demand for retail real estate going strong.

Rounding out the top 10 strongest retail real estate markets are Dallas-Fort Worth; Washington D.C.; Oakland, Calif.; Seattle; Los Angeles; Las Vegas; and Salt Lake City.

"Virtually all economic indicators point to improving conditions," says Robert Bach, national director of market analysis for Grubb & Ellis. "Real estate is on the upswing, although it will take some time to fully reverse the effects of the 2001 recession and the job-loss recovery of 2002 and 2003."

The forecast indicates that all segments of the commercial real estate industry should fare well during 2004, thanks to a stronger economy. Grubb & Ellis also evaluates the real estate office market, multihousing market and industrial market.

Northbrook, Ill.-based Grubb & Ellis [OTC BB: GBEL] provides real estate transaction, management and consulting services.