Commercial Real Estate properties are broken down by size to create two different market analysis.
- Buildings less than 10,000 square feet- Small Commercial Real Estate Market (SCRE)
- Buildings greater than 10,000 square feet- Large Commercial Real Estate Market (LCRE)
72% of all Commercial Real Estate properties fall within the SCRE market, and the remaining are in the LCRE market.
The LCRE market tends to bring big numbers along with their sales transactions, due to their location within major metropolitan areas, and the shear size of the property lends to a higher purchase price. Portfolios, REITS and major investors tend to play in this area.
The SCRE market is what Coastal Georgia typically falls within, and also where Driggers Commercial Group has built its knowledge, experience, and relationships in. According to the National Association of Realtor’s 2015 3rd Quarter report:
”Sales of commercial properties during the second quarter rose 9.0 percent on a year-over-year basis. For the first half of the year, sales in REALTORS®‘ markets advanced 11.0 percent year-over-year. With the shortage of available inventory reported as the number one concern for NAR members, price growth accelerated in SCRE markets during the second quarter of 2015, with properties trading at 6.6 percent higher average prices compared with the same period in 2014. The average transaction price increased from $1.7 million in the first quarter 2015 to $2.0 million in the second quarter 2015.”
With the increase in sales transactions and prices, Commercial Real Estate is on the rise again. Look to Driggers Commercial Group as your Commercial Real Estate consultant throughout Coastal Georgia.
Author: Robert Jahn