2015 Q2 Commercial Real Estate Market Survey
In line with their mission to distribute comprehensive data to their members, strategists, media, and the consumers, the National Association of REALTORS® has released the results of a market survey covering the second quarterof 2015.
According to NAR president Chris Polychron and the association’s officers, the statistics gathered have been duly qualified, with the following results:
Sales
- 60% of commercial REALTORS® closed a sale
- 9% rise on sales volume from the Second Quarter of 2014
- 7% increase on year-over-year sales prices, compared to the previous quarter’s 4% gain
- Sales transaction values continue to rise, reaching $2 million from last quarter’s $1.7 million.
Investments
- Investment sales for commercial real estate picked-up with a 6.4% quarterly increase and 9.1% hike from the second quarter of 2014.
- The current market value of apartments sank its cap rate to 6.8%, lowest among all property types. Retail transactions have the highest comparative capitalization rate of 8%. Office and industrial spaces come close at 7.7% and 7.5% respectively. Hotels follow at 7.4%.
- The general direction of business opportunities are looking at a positive 6.4% rise. The NAR predicts favorable circumstances in the Industrial, Retail, Construction, and Apartments/Multifamily areas.
Leases
- 54% of commercial REALTORS® completed a lease transaction
- 60% of the commercial market are still under 36-month to 60-month lease terms
- An average gross lease volume of $629,000 was estimated during this quarter
- On average, 84% of leased properties are 5,000 square-feet and below in size, same as last quarter’s
Others
- The increase in employment opportunities caused no wage improvements, weakening confidence in the market
- Delays in the building departments result in a lack of stability, which causes prices to go up
- Some small towns are seeing plenty of startups and franchises
To find out about available commercial properties in Los Angeles, contact Leo Nordine at 310-379-880.
