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!
Not quite a recovery, however it’s encouraging news thats for sure. I really like the quote from Jay Tibshraeny We kind of got to the bottom of the Grand Canyon with this Great Recession. You dont just climb out of the Grand Canyon in one hour.
Thanks Jorge! I like the quote from Jay T as well!