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Seattle CRE Investment Sales Surge in 2010 February 16, 2011

Posted by Erik Swanson in Articles, Research/Data, Retail News, Sale.

According to The Daily Journal of Commerce, Loopnet and Real Capital Analytics have reported a huge increase in Seattle’s 2010 commercial real estate investment sales. Not surprisingly, the report confirms that investors eagerly deployed capital into core office and apartment properties. Notably, Cap rates have declined across all property types…even in retail properties which was the only property type where sales actually declined. We’ve said it before, there’s no place to go but up for retail. Hopefully, continued job creation and the lack of significant new retail construction will mean absorption that puts added downward pressure on vacancy. Who knows, maybe we’ll even see rents begin to rise?

Led by a surge in office and multi-family sales, commercial real estate investment sales volume jumped 91 percent in Seattle, hitting $2.76 billion in 2010, according to a new report from LoopNet and Real Capital Analytics.

Commercial office sales totaled $1.39 billion last year as investors bought well-leased, core properties. The dollar volume of sales was $436 million in 2009.

Average price per square foot values increased, going from $203 to $317. The average cap rate on office deals tumbled 240 basis points to 7.3 percent.

Multi-family sales volume hit $854 million last year, up from $382 million in 2009, with cap rates down 20 basis points to 6 percent.

Industrial sales rose a bit, hitting $396 million with an average cap rate of 7.7 percent, also down 20 basis points from 2009.

Retail investment sales fell to $124 million, down from $245 million. Cap rates dropped 50 basis points to 7.9 percent.

Sales in all categories are for properties worth more than $2.5 million.



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