REAL-ESTATE ROUNDUP: First half of 2013 commercial real-estate results: a seller’s market
by Tony Franco
Published - 11/13/13 - 05:14 PM | 8679 views | 0 0 comments | 332 332 recommendations | email to a friend | print
By Tony Franco

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.
Comments-icon Post a Comment
No Comments Yet
Comments are back! Simply post the comment (it'll complain about you failing the human test) then simply click on the captcha and then click "Post Comment" again. Comments are also welcome on our Facebook page.