The commercial market’s rebound is starting to extend beyond just coastal regions and into secondary markets as credit availability continues to improve, Bloomberg News reports.
Minneapolis, Dallas, and Denver have posted some of the largest gains in sales by dollar volume among major metro areas outside the coasts in the first quarter, reports CoStar Group Inc.
In Minneapolis, sales rose 127 percent from a year earlier. In Dallas, sales rose 108 percent and 89 percent in Denver. For the country, sales in commercial property increased 47 percent.
High demand for commercial properties in New York, Washington, D.C., and San Francisco have sent prices higher, so investors are starting to eye secondary markets for its potential for higher returns.
“You’ll see a move to the secondary markets because there’s a higher yield there and also lending is coming back in those markets,” says Janice Stanton, senior managing director of capital markets for Cushman & Wakefield Inc.
Robert Bach, chief economist for Grubb & Ellis Co., told Bloomberg News that areas like Dallas, Houston, and Minneapolis are attractive commercial markets because the employment or population growth is high in those areas.
Source: “Property Buyers Expand Their View as Rebound Spreads From Denver to Dallas,” Bloomberg (May 11, 2011)
Joe Naccarato, Broker, Realtor
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
