Louisville Commercial Real Estate Inventory

On Monday, I waded into the residential real estate waters and noted that Louisville home sales in recent weeks are down tremendously from a year ago and there seems to be renewed price depreciation.    It only seemed fair to take a look at Commercial Real Estate Sales and Leasing for comparison.   

Number of Listings

Today on KCREA (our commercial equivalent of the MLS), I found that we have 1635 active Lease Listings and 1480 active Sales Listings.   The averages inventory levels have stayed very consistently at 1400 Sales Listings and 1600 Lease Listings.     This indicates an approximate 2.2% increase in inventory of Lease Listings and an approximate 5.7% increase in inventory of Sale Listings.  

Number of Leases and Sales

For the month of October 2010, KCREA reported 23 leases executed and 14 non-redundant sales.    Leasing activity which has been slowly increasing since the beginning of the year seems about on par for recent weeks.   Sales activity remains right on average of about 2.5 transactions per week, which has been the case for most of 2010.      

Expected Time on the Market

Looking at the number of transactions and the amount of inventory, we would expect a time frame of 71 months or just under 6 years for all of the current listing to be listed.   For Sales, we would expect a time period of 106 months or about 8.8 years for all current listings to be sold.  

While data is nice, the important thing to note here is that we are still very much in a buyers market in Commercial Real Estate.   Most people I know do not want to wait nearly 9 years to sell their property nor do they want to wait 6 years to lease it.   To be successful in this market, you have to recognize this fact and market the property accordingly.  

If you have any questions or comments about this information, give me a call.   Also, I would love to help with your real estate needs.    

Thanks, all.   Have a great day!

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

I am a licensed real estate broker in Kentucky and Indiana and specialize in Commercial Real Estate.  I handle Land, Office, Industrial, Investment, and Retail property and would love to help with your real estate needs.   You can also find me on Twitter @mccoydw