KCREA (Kentucky Commercial Real Estate Alliance) has added some new features with statistics from their data. Some of the information is data I used to mine periodically, which is nice because it can be a little easier to get. Last week I decided to check it out a little and printed a Summary of Louisville and Jefferson County Office activity. (for purposes of comparision, the report was printed on March 1, 2011.)
In the previous month, 7 properties were leased and 2 were sold. Average asking rate to lease office space was $15.40 / SF but actual reported lease rates were $9.14 / SF. Average asking price to sell office space is $80.82 / SF but actual reported sales averaged $65.66 / SF. Properties that sold averaged 438 days on the market.
Of course you have to be careful with statistics. Given that there are very few transactions, it may not be wise to rely too heavily on the averages. In my mind the most telling figures are the number of transactions themselves. Both Sales and Leasing numbers are down significantly and while I might not put too much emphasis on the actual rates, I think it is telling that the information we do have indicates steep discounts from asking price on deals that were done.
Happy Mardi Gras, everyone. Hope you get some Red Beans and Rice, some beignets, and maybe even a Hurricane to celebrate.
David
David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY 40299
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