The first half of the 2013 commercial real-estate transactions and results for apartments and office/retail buildings are in. Using various online tools and interviewing real-estate brokers who specialize in coastal commercial real es-tate, I have analyzed the first half of 2013’s apartment and office/-retail markets for commercial properties located in the 92106 and 92107 ZIP codes.
Apartments in the 92106 and 92107 ZIPs: five sold transactions totaling $8,473,000, with an average capitalization (CAP) rate of 4.59 percent, and an average price-per-unit equal to $201,738. The average market time was 50 days. In 2012, there were 11 transactions with an average price per unit of $186,055.
Office/retail buildings in the 92106 and 92107 ZIPs: only one sold transaction totaling $800,000 at 4932 Newport Ave. The price per square foot was $229. In 2012, there were a total of eight sold transactions in the 92106 and 92107 ZIPs. There are currently only four office/retail buildings for sale in the 92106 and 92107 ZIPs.
For both apartments and office/-retail buildings, the low CAP rates, high prices and low velocity of transactions are clear indicators that we are in a seller’s market, meaning 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 is a coastal commercial real-estate expert. He can be reached at (858) 717-1697.