By Russ Elliott
President, GCAR’s Commercial Realtors Council
Most weeks, GCAR uses this space to discuss issues related to residential real estate. Yet a significant portion of our Association's membership is comprise of commercial practitioners. I thank President Nathan Walldorf for inviting me to provide this week’s column to share some insight into commercial real estate.
Nearly 20 percent of GCAR's membership is comprised commercial real estate professionals. We represent more than 110 firms, and currently maintain more than 1,200 active listings. Those listings include nearly 380 properties for lease with and approximately 820 for sale. While the four core commercial sectors are office, industrial, retail, and multifamily, GCAR Realtors drill down a bit more specific and offer shopping centers, vacant land, hospitality, farms and ranches, special purpose, and business opportunity.
The National Association of Realtors recently released the Commercial Real Estate Outlook for Quarter 2, 2016. The Outlook offers overall projections and analyzes quarterly data in the office, industrial, retail, and multifamily markets, including the following national highlights:
- The pace of commercial transactions dropped in the first quarter of 2016 following an upbeat 2015.
- The volume of commercial sales in large buildings totaled $111 billion, a 20 percent year-over-year decrease.
- Continuing the trends from 2015, apartment transactions comprised the largest share of first quarter volume, with $38.6 billion in sales, followed by office properties, which accounted for $31.2 billion.
- Retail and industrial sales totaled $17.9 billion and $12.6 billion, respectively.
- In comparison, sales in small buildings rose 8.5 percent year-over-year during the first quarter, based on Realtors market data.
While this national quarterly report is a good starting point, let's examine the Greater Chattanooga market. The current commercial inventory represents 24.7 million square feet for sale and 14.5 million square feet for lease. This inventory also offers 28,118 acres of land and farm properties. What's it all worth? Current inventory would bring a $6.1 billion total sale price.
The commercial real estate sector in Greater Chattanooga is key to our community. Commercial space is everywhere you turn – local coffee shop, industrial park, downtown, the suburbs, and even the office where you work. If you're looking for commercial space, a good place to start is www.gcar.net. The "Search Commercial" button is your access to all commercial properties for sale or lease currently listing with a local Realtor. We look forwarding to assisting you with your commercial real estate needs.