The brokerage's regional office in Boca Raton cites a number ofmarket indicators to support its cautionary overview: Transactionvolume has begun to slow from the feverish pace of 1998-99.Capitalization rates are experiencing upward pressure. Bidders onan offering have fallen by as much as half.
Also: It takes longer to market a typical property. Closingwithout a back-up buyer is unusual. Investors are becoming moreselective in their acquisitions.
In the South Florida office sector, for example, class A salesare down. The average price has dropped to $92.90 psf this yearfrom $103.77 in 1999. Signs of price weakness are particularlyevident for class B and C product.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
