The number of for-sale properties are understandable--the creditmarket has forced more owners to put their properties on the market,either because they were unable to get refinancing or are in adistressed situation.
A shift in prices, as well as cap rates that have dropped by about 30to 50 basis points depending on whether it is a single or multitenant, is responsible for the change in demand, Snell tells GlobeSt.com. The change has been dramatic in some submarkets, he says. "We had several Walgreens inside DC and in Alexandria, VA that had been sitting on the market for about a year." These recently sold, he adds.
Kirk Knight and Snell recently listed a McDonald's ground lease inRockville, MD for $2.3 million--a rarity as McDonald's usually buys up the few net leased properties it doesn't already own, Snell says. Encompassing 3,657 square feet, the fast food outlet was developed in1998. Snell says he expects several full priced offers from both 1031Exchange and cash buyers.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
