NEWS
Archives
November 2011
Nimblebit, LLC has leased 735 square feet of Office space  [more]
Gregory W. Staffon, DDS, A Dental Corporation has Leased 2,156 sf of Office  [more]
Warehouse Solutions, Inc. has subleased 54,100 square feet of Land.  [more]
October 2011
Cap rates fell in first half of 2011, report says  [more]
Masanobu Takada leased 1,256 sf of Retail space  [more]
Daniel and Candarlaria Klein has leased 2,615 sf of Industrial space  [more]
September 2011
U.S. in Strong Global Position, Economist Tells Conference  [more]
August 2011
Payless, Stride Rite stores to shutter  [more]
Pacific Sunwear trades stock for rent relief  [more]
Commercial Building on Friars Road sold  [more]
Lourdes Mexican Food, Inc. (dba Lourdes Mexican Food) has leased 1,250 sf of Retail space  [more]
July 2011
Global Polishing Solutions, LLC has leased 1,500 sf of Office space  [more]
Farley Holdings, LLC has leased 1,063 rsf of Office space  [more]
June 2011
Neal Electric Corporation has leased 140,700 sf of Land  [more]
JB & More, Inc. has leased 625 sf of Retail space  [more]
Klassic Kleaners has leased 1,860 sf of Retail space  [more]
Jack Montogomery has leased 3,980 sf of Industrial space  [more]
Industrial building on Danielson Street sold  [more]
May 2011
Carl Karcher, Inc. has Leased 4,004 sf of Retail space  [more]
Multi-Family Apartment on 1510 38th Street sold  [more]
Multi-Family Apartment on 1520 38th Street sold  [more]
Multi-Family Apartment on 1530 38th Street sold  [more]
Multifamily Investment, Leasing Fundamentals Off to Solid Start In 2011  [more]
Metro Furniture has leased 7,080 sf of Retail space  [more]
April 2011
Multi-family Apartment on 1540 38th Street sold  [more]
Jack-In-The-Box restaurant site in San Antonio, Texas sold  [more]
Evans Mobile Veterinary Care, Inc. has leased 2,225 sf of Retail space  [more]
March 2011
SAMCO has leased 5,400 sf of Retail space  [more]
Scott Bourke has leased 930 sf of Retail space  [more]
February 2011
Shopping center development hit 40-year low in 2010  [more]
US commercial property prices may be outrunning rents  [more]
January 2011
Multi-Family four-unit on 1404 38th Street sold  [more]
CRE Sales Deal Volume Returning to 'Normal' Levels
Victory Cultural Dissemination, LLC has leased 3,740 sf of Office space  [more]
Jersey Mike's Subs has leased 2,210 sf of Retail space  [more]
December 2010
Nabors Express Corporation has leased 4,875 sf of Retail space  [more]
UpWind Solutions, Inc., has leased 10,075 sf of Industrial space  [more]
Ecademy California Charter School has leased 460 sf of Office space  [more]
October 2010
Global Polishing Solution, LLC has leased 10,000 square feet of Industrial space  [more]
Dave's Wholesale has leased 6,000 square feet of Industrial space  [more]
Tierra Mesa Veterinary Clinic has leased 1,860 square feet of Retail space   [more]
Restaurant site on Rancho Penasquitos sold  [more]
September 2010
Edward D. Jones & Co. has leased 1,029 square feet of Retail Space.  [more]
August 2010
Giovanni's Restaurant has leased 5,580 sf of Retail space  [more]
Restoration Hardware, Inc. has leased 5,391 square feet of Industrial space.  [more]
Alberto Palomino, LLC has leased 2,790 square feet of Retail space.  [more]
Pure Mororsport, LLC has leased 2,821 square feet of Industrial space.  [more]
Prime Selection, Inc. has leased 4,050 square feet of industrial space  [more]
July 2010
Alexander M. Zvegintzov (Plaza Home Mortgage) has leased 1.409 square feet of Office space.  [more]
May 2010
National City Cable, Inc. has leased 2,640 square feet of Office/Warehouse space  [more]
Paylease, Inc. has leased 3,921 square feet of Office space  [more]
Noor Clothing, Inc. has leased 2,630 square feet of Retail space  [more]
Yu Le Weng dba China Express has leased 930 square feet of Retail space  [more]
Vy Nguyen and Edwin Widjojo dba Ocean Foot Massage has leased 2,790 square feet of Retail space  [more]
April 2010
Plural Publishing has leased 8,000 square feet of space  [more]
March 2010
JJC Foods, LLC (Taco Bell) has leased square feet of Fast Food Drive Thru space  [more]
Alfred Angelo Brides Studio #3 has leased 7,000 square feet of Bridal Salon space  [more]
Richard and Tiffany Trevino dba Indigo Cafe has leased 1,310 square feet of Retail space  [more]
Chris Nikolsky has leased 1,375 square feet of Industrial space  [more]
Jerry Mooney dba FOAMCO has leased 9,138 square feet of Industrial space  [more]
Subway Real Estate Corp. has leased 1,860 square feet of Retail space  [more]
February 2010
Sign-a-rama has leased 1,860 square feet of Retail, Office, Industrial space  [more]
VIEW CURRENT
CRE Sales Deal Volume Returning to 'Normal' Levels
Encouraged by Continued Improvement in General Economic Indicators, Investors Widening Their Geographic Parameters, Taking on More Risk
By COSTAR Mark Heschmeyer
January 5, 2011

 

If the third and fourth quarters of last year are any indication, then deal volume is returning to the commercial real estate investment sales markets.

According to CoStar COMPs, sales volume for commercial property nearly doubled from about $22 billion of deals in the first quarter of 2010 to almost $36 billion in the fourth quarter - a number that will likely increase as CoStar finalizes its quarterly tally and confirms the flurry of deals signed at year-end and those that surface in public records.

Several industry outlooks released in the last few weeks expect that a heightened level of deal volume is primed to continue.

"After rising by an estimate 60% in 2010, commercial property sales volume is expected to increase by another 25% to 20% in 2011," predicted William E. Hughes, senior vice president and managing director of Marcus & Millichap Capital Corp. "The expected improvement [in 2011] will move the investment market closer to a more 'normalized' level."

The current transaction pace is very similar to that of the second half of 2002, with nearly identical third quarter volumes and likely comparable fourth quarter trading levels as well, according to Jones Lang LaSalle. The activity in both time frames is representative of more normalized, sustainable levels - much lower than the unprecedented lofty levels of the 2005 to 2007 boom, and much greater than the sales drought in 2009.

The level of liquidity in the U.S. capital markets has improved dramatically over the course of 2010, as investors have regained confidence, particularly in stable, well-leased and located properties in the traditionally best-performing markets, Jones Lang LaSalle noted. Activity will continue to trend upward throughout 2011 as investor interest grows amid a very favorable monetary environment and an improving macroeconomic picture.

"Total investment transaction volume in apartments, office, retail and industrial will increase by a projected 36% over the 2010 figure, which at an estimated $92 billion would represent an 80% increase over the low reached in 2009," projected Josh Gelormini, vice president of capital markets research for Jones Lang LaSalle.

The deals in 2011 are likely to look different than the deals in 2010, too. There is an increased willingness to look for buying opportunities beyond either super core markets and trophy assets or vastly distressed properties, according to the fourth quarter 2010 findings of the PwC Real Estate Investor Survey.

The report notes that interest in secondary locations, Class-B properties, and value-added Class-A plays is heating up and that buyers are becoming more comfortable with taking on slightly more risk, suggesting that both investors and lenders are gaining more confidence in the overall performance of both the economy and the real estate industry.

"This time last year investors were solely focused on 'treasures' or 'traumas', properties that were either top-notch quality or significantly discounted due to sellers in distress, and there was no appetite for assets in the middle of the spectrum," said Mitch Roschelle, partner, U.S. real estate advisory practice leader, PwC. "Now, many of them are looking to widen their investment parameters and take on additional risk as they see signs that the economy and the industry are slowly healing."

And at the outset of 2011, CoStar COMPS shows that more than 6,700 property sales are pending with a combined asking price of more than $9.5 billion. Of that dollar volume, about $1.49 billion is reportedly in escrow; another $6.41 billion under contract and $1.59 billion listed as pending.

Where office properties have dominated the 2010 sales landscape, retail, multifamily and industrial properties are the three leading property types in pending deals with asking price volumes of $2.49 billion, $2.08 billion and $1.94 billion respectively. Office properties make up just about $1.91 billion of pending deals. Mixed-use properties come in at about $535 million; flex properties at $268 million, hospitality at $165 million.