Commercial Sales Make Big Comeback in First Quarter 2011
The Commercial Real Estate Market on the South Coast had one of its largest sales quarters in over a decade with 25 sales of commercial properties, excluding apartments, in the first quarter. Compared to the 12 sales in the first quarter of last year and 6 sales in the first quarter of 2009, we are off to a fantastic start to 2011 and can expect annual sales to be substantially above the fifteen year average of 64 sales per year.
Though building and property prices have not gone up, they appear to have stabilized and many properties have had multiple offers. Buyers are currently taking advantage of lower prices and the fact that property values have dropped roughly 20% to 30% from their high of 3 to 4 years ago. Due to the help of SBA financing, providing owner/users with financing in the low 5% range with as little as 10% down, several buyers have been former tenants who are now able to buy empty buildings and have their mortgages at the same or less than their previous rents. As always, buildings listed at their current market value are selling quickly while overpriced properties are seeing limited action.
Many investors have jumped back into the market to buy properties for all cash or with large down payment. Investors are competing for prime location properties to capitalize on the opportunity to buy properties at price levels of 2002/2003. Of the 25 sales that took place in the first quarter this year, Radius was involved with an astonishing 17 commercial sales which accounts for 68% of the commercial properties sold.
Recent News
California Commercial Real Estate News Roundup 2020
We put together a list of transactions, lease highlights, and development projects around California's commercial real estate market. The list also …
Noozhawk: Brian Johnson: Californians for Homeownership Tackles Anti-housing Policies Across the State
Brian Johnson, Managing Director, Radius Commercial Real Estate; President, Santa Barbara Association of Realtors Policies related to the …
Radius Insight Q4 2020 Market Report: Solid finish to unpredictable year
Please download the complete Q4 2020 market report here or contact your Radius broker for more information. Q4 2020 Commercial Sales Summary: …