Expert from the article “Economic Growth Drives Commercial Investments in Q1 of 2013″ by Research Economist, George Ratiu: Prices for commercial properties were up slightly in the first quarter. Cap rates inched up slightly, to an average 7.5 percent nationally across all property types, mostly due to a redirect in investments towards secondary and tertiary markets.
The rise of secondary and tertiary markets which began during 2012 has intensified during the first quarter of this year.
However, on a year-over-year basis, the first quarter recorded 16 individual markets with triple digit gains in sales, most of them secondary markets. Jacksonville posted the strongest sales gains, up 625.2 percent, boosted by apartment and office sales. Sales in the Virginia and Maryland suburbs of DC also jumped 295.3 percent and 199.1 percent, respectively. The surge in sales were driven by large office and apartment property (Archstone portfolio sale) transactions in both markets. Other markets with noticeable investment surges were East Bay, Westchester, Kansas City, San Antonio, St. Louis, and Long Island.
See full article on National Association of Realtors® Website
Graph Source: Real Capital Analytics