KCREA Commercial Sales Snapshot

I spent some time this afternoon mining the KCREA data base for information on Commercial Real Estate Sales.   KCREA (Kentucky Commercial Real Estate Alliance) provides our Commercial Information Exchange which is similar to the residential MLS. 

So far this year, there have been 34 sales reported on KCREA totaling $14,572,400.   (About 11 sales per month.)   Doing the math for you, the average sale was $428,600.    However, the median sale price was $182,500.     In other words, although the average sale price was $428,600, most of the properties sold for far less than this.   This is due in part to the fact that the top 4 sales totaled $4,420,000, nearly a third of the dollar amount of all sales YTD.  

The recorded sales included 7 multifamily properties, 10 retail properties, 3 land properties,5 industrial properties, 7 office properties and 2 special purpose properties.    Presently on KCREA there are 86 multifamily listings, 309 retail listings, 600 land listings, 219 industrial listings, 299 office listings, 67 special purpose listings, 15 farm listings, 23 shopping center listings, and 5 hospitality listings.   

What you can take away from this is that overall sales are down from last year.  (last year averaged more than 4 sales per week vs 2,8 sales per week YTD).   But if you are selling, you probably are happiest if you are selling a multifamiliy property where more than 8% of the listed properties sold in the first quarter.   You are probably saddest if you have commercial land on the market where only 0.5% of the listed properties sold in the first quarter.  

Final conclusion is that we are continuing a buyer's market with inventories growing and number of sales slowing.   The successful seller will act agressively in this market to make sure that there property is in the top 5% of all comparable properties in price and condition.

I am interested in your questions and comments.   Let me know if I can help with your  real estate needs.

Thanks all and have a great day.   Good luck to all those running the Papa John's 10 mile run in the morning!

David

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