In compiling my research for a client that is looking to purchase retail properties in my market (10-50,000 Sq. Ft.), I uncovered the following facts:
1-There have been more sales in the 1st & 2nd quarters of 2011 (30) vs all of last year (29)
2-The average price per square foot so far this year is already 2% higher than last year
3-When looking at 2Q10 vs 2Q11, the price per square foot is over 21% higher!
4-Cap rates for the year are averaging a little over 10% but we saw a 280 bps decline in cap rates from Q1 to Q2
What does this all mean? Buyers that have been sitting on the sidelines for the past 2 years are becoming very active. They see that prices are at or near a bottom in our market and positioning themselves for the recovery.
To see more of my research on this segment of the market, send me a quick email!