Investors are snapping up shopping centers and apartment complexes but shunning offices. That’s according to LoopNet’s analysis of investment in commercial real estate in Palm Beach County for the 12 months ended Sept. 30.
LoopNet tracks institutional-grade deals of $2.5 million or more. Its findings:
Sales of retail properties soared to $295 million in the past year from $47 million a year ago. Capitalization rates rose to 7.8 percent from 7.4 percent last year. (The “cap rate” is a common valuation measure for commercial real estate. The higher the rate, the less optimistic investors are.)
Apartment sales rose to $425 million from $134 million. Price per unit soared to $138,234 from $76,856 a year ago, while cap rates fell to 5.6 percent from 6.5 percent.
Office sales fell to $90 million this year from $186 million a year ago. Prices per square foot plunged to $108 from $185, while office cap rates jumped to 9.6 percent from 8 percent.
By Jeff Ostrowski
Source: Palm Beach Post
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