Who says you can’t look back? National Association of REALTORS® has released its second quarter 2016 Commercial Real Estate Market Survey, and the takeaways appear pretty good for the national commercial real estate market picture for 2Q.
In June 2016, a random sampling of over 62,000 NAR members with an interest in commercial real estate was asked for their input. Nearly 1,000 responded with completed surveys, for a response rate of 1.6%. A quick look at the resulting numbers:
- Percentage of members completing a commercial lease transaction: 59%
- Average transaction value: $1.4 million
- Percentage of sales volume rise from one year ago: 8.4%
- Percentage of REALTORS who closed a commercial sale 2Q16: 66%
- Average cap rate nationally: 7.0%
- Percentage of sales price increase year-over-year: 5.3%
- Bump in leasing volume over previous quarter: 8.7%
Number One Concern: Inventory
When asked for their number one concern, responding NAR members answered that inventory trumped other concerns including bid/ask pricing gaps, financing availability, local and national economic conditions. Pricing and deal value averages are therefore expected to rise nationally as growing demand meets less-rapidly-growing supply.
NAR Members may download the entire report here (login required):
(Photo credit: Wikipedia)