New construction vant work out well if you hold long term if you are paying retail to build it.

I have spent the last 7.5 years working in operations, physical retail, and workplace strategy, with over 5.5 of those years as a program/project manager.

How is it affecting performance and leases of retail and office properties?  

When economy is good those types tend to expand but when economy stalls or goes down those small business owners are looking to save costs anyway they can.That is why I like retail, medical office, industrial as these spaces serve a specific need and are more hard to vacate and move from due to build outs.

While they don't have all of the retail type stuff of the big players, they can legally buy and sell real estate (check local laws) for clients.

. $129K looks like a retail price to me.

Some comments: Homes purchased in San Fran, LA, OC, San Diego at retail are going to be initially cash flow negative when using realistic cost projections. 

I am planning to 1031 Exchange a small retail commercial building here in Western Washington this year, and am interested in exploring a construction exchange on the back end to build a new SFR or Duplex rental with the idea of gaining instant equity upon completion.

My town in New Jersey is going through a large 46 acre redevelopment, for which they are tearing down vacant strip malls and redeveloping with 800 apartment units, retail shopping, mass transit to NYC (busses), technology center and medical building.

I'd rather discount my position (within reason) to and transfer title to another investor who can either collect payments and keep the profit, or (if tenant-buyer defaults) the new title holder can evict and do whatever they want as title holder (sell as-is, renovate and sell retail, lease out at $1200+ a month, whatever).