Posted on 06/30/2009 4:13:45 AM PDT by TigerLikesRooster
Commercial Real Estate Takes a Beating
Tuesday, June 30, 2009, Vol. 124, No. 126
ERIC SMITH | The Daily News
SILVER LINING: The Wesley Highland Manor senior nursing facility at 3549 Norriswood Ave. near the University of Memphis sold for $7.3 million in May and was by far the top commercial deal for the month. -- PHOTO BY ERIC SMITH
Commercial real estate suffered a sharp decline in May, with sales falling dramatically from the same month a year ago and the previous month.
Shelby County saw just 35 commercial sales in May, marking a 49 percent dropoff from 69 sales in May 2008 and a 35 percent dropoff from 54 sales in April, according to the latest data from real estate information company Chandler Reports, www.chandlerreports.com.
Though the overall number dipped, the average commercial sales price held steady, thanks in part to a handful of high-dollar transactions. Sales in May averaged $669,863, just a 13 percent decrease from $768,090 in May 2008 but actually a 91 percent increase from $350,337 in April.
The total sales volume in terms of dollar amount last month was $23.4 million, down 56 percent from $53 million in May 2008 but up 24 percent from $18.9 million in April.
Jon Albright, president of Memphis Area Association of Realtors and a partner at Investec Realty Services LLC, said the economy continues to wreak havoc on the commercial sector. Also, the unavailability of loans remains an issue.
“Financing is still a significant part of what may or may not be happening on the sale side,” Albright said. “That part of it is still being looked at pretty heavily, both locally and (nationally). We’re trying to figure out how we can get more money into the commercial area for financing.”
(Excerpt) Read more at memphisdailynews.com ...
Ping!
I can’t wait to see Obama the Tyrant’s plan to bail out commercial real estate.
Yup. A few have been warning of the coming wave of CRE defaults. We haven’t hit bottom yet folks!
Zero is going to appoint Donald Trump as the Real Estate Czar. /sarc
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