Metro Commercial Real Estate Releases 2006 Commercial Retail Real Estate Outlook

CONSHOHOCKEN , PA – Despite a volatile economy and increased construction costs, the commercial real estate market will remain vibrant in 2006, according to Steven H. Gartner, President of Metro Commercial Real Estate, Inc., the Philadelphia region's premier full-service retail real estate company. Overall, Gartner predicts continued growth in commercial real estate activity throughout the Northeast and an upward trend nationally. Also, the fallout of the Federation Department Stores acquisition of May Department Stores will unload many well-located sites onto the market, while also allowing mall owners to aggressively reinvigorate and remerchandise their properties.

“From hurricanes and natural disasters to an increase in interest rates, 2005 brought several challenges to the commercial real estate sector,” says Gartner, “Yet the market remains aggressive, with continued expansion within the small tenant and dining categories.” Gartner credits fast casual restaurants such as Pei Wei, Cosi and Salsaritas Fresh Cantina as key retailers looking to expand throughout the region. Additionally, despite increased construction costs, Gartner predicts that developers will continue to focus on key lifestyle and mixed use projects, such as The Shoppes at Valley Forge and Worthington in Malvern , PA.

Demands from mega-box retailers in the discount and home improvement categories will also continue to increase. Though these merchants' expansion plans are strong, “Finding adequate sites to accommodate these retailers continues to be a challenge,” says Gartner. He also forsees a renewed interest in the category of killer boxes, including electronics, sporting goods and office supplies in 2006.

Though we have seen a slow, yet steady increase in interest rates, the overall outlook for 2006 continues to be positive, says Gartner, “Despite predictions of an economic downturn, the commercial retail real estate market remains progressive and strong”.

Media Contact:
Metro Commercial Real Estate
Jamie Joffe
+610 246 2606
jjoffe@metrocommercial.com

About Metro Commercial:
Metro Commercial Real Estate, Inc. (www.MetroCommercial.com) is one of the area's leading brokerage firms focusing on the leasing, sale, and expansion of retail properties throughout the region. Founded in 1987, Metro Commercial specializes in retail tenant representation, shopping center leasing, property management, investment property sales, construction services and enclosed malls. With 3 offices throughout Pennsylvania and New Jersey , Metro Commercial currently serves as the exclusive leasing agent for more than 190 retail properties, totaling in excess of 14 million square feet. Metro Commercial has been recognized as one of the “Best Places to Work” by the Philadelphia Business Journal, and is committed to client satisfaction and superior customer service.