The summer 2010 issue of Commercial Connections contained an article called “The Winds of Change.” In it, was a graphic showing Commercial Real Estate Transaction Closings per week since 2007. Here’s what it said:
2007 512
2008 262
2009 127
2010 124
* Source: Real Capital Analytics, Inc.
Our business has been trashed in 3 years. The NAR Chief Economist, Lawrence Yun talked about how “brutal” the last 3 years have been for commercial real estate practitioners. He said “commercial real estate investment sales collapsed by 90% from peak just a few years ago.” He also said that the MIT Center for Real Estate alleges that average property values have tumbled by 58%. The tenor of the publication, however, was that positive things are starting to happen.
Check out the 2010 1st quarter CAP and vacancy rates compiled by the NAR Research Division:
2010 Q1 Cap Rates 2010 Q1 Vacancy Rates
Office 9.1% 21.2%
Industrial 9.0% 18.8%
Retail 8.9% 20.8%
Multi-family 8.6% 12.1%
Hotel 10.3% 26.0%
Development 11.7% 38.6%
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