Commercial real estate in 92109: So far, 2013 is a seller’s market
by Tony Franco
Published - 08/15/13 - 03:05 PM | 9235 views | 0 0 comments | 423 423 recommendations | email to a friend | print
The first half of 2013 commercial real estate transactions and results for apartments and office/retail buildings are in. Using various online tools and interviewing real estate brokers that specialize in coastal commercial real estate, I have analyzed the first half of 2013’s apartment and office/ retail markets for commercial properties located in 92109.

Apartments in 92109 have had: 11 sold transactions — six of which were “off-market” — totaling $22,962,500 sold, with an average capitalization rate (cap) of 4.69 percent, and an average price per unit equal to $185,181. Though most apartments were on the market for 30 days or less, the average market time was 137 days. In 2012, there were 23 transactions totaling $43,900,000 with an average cap rate of 5.08 percent.

Office/retail buildings in 92109 have had eight sold transactions, totaling $10,765,000 sold, with an average cap rate of 6.94 percent, and an average price per square foot equal to $334. The average time to market a property (before putting into escrow) was 228 days. In 2012, there were a total of 12 transactions.

For both apartments and office/retail buildings, the low cap rates, high prices and high velocity of transactions are clear indicators that we’re in a seller’s market, i.e., there is a low supply of apartments and office/retail buildings listed for sale and there are a lot of buyers looking to invest. If you’re considering selling your commercial real estate in a favorable market by the end of 2013, contact your local broker and get started with a free opinion of value.

— Tony Franco specializes in coastal commercial real estate and can be reached at (858) 717-1697.

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