average capitalization rate for retail spaces was 7.0 percent in 2013, 20 basis points lower than 2012, according to Real Capital Analytics. In the six major markets tracked by RCA, cap rates averaged 6.3 percent, while in the rest of the markets, cap rates averaged 7.3 per-cent.
While Los Angeles and Chicago topped the list of markets by dollar volume, with $3.6 billion in transactions each, secondary markets witnessed the largest boost in investments. Ranked by growth, Cincinnati posted growth in sales of 251 percent in 2013, leading a list of cities which recorded triple-digit gains—Long Island (223%), Austin (179%), Portland (155%), Las Vegas (147%), and St. Louis (106%). In a positive development, retail investments during 2013 advanced across all markets and regions, both in terms of volume and prices.
Adding to the positive trends, outstanding retail distress declined 14 percent in 2013, to a total of $22.8 billion. Compared to the $72.1 billion in retail defaults which occurred in the wake of the 2008-09 recession and financial crisis, the current levels are manageable, especially considering the 63 percent rates of return on distressed loans. Sales of distressed retail properties made up less than 7 percent of total volume in 2013. The CMBS sector retains the largest volume of retail distress, at $14.6 billion, followed by domestic banks, which hold $4.0 billion.
With capital availability rising and diversifying, coupled with improving fundamentals the 2014 outlook for retail markets is positive. Global consumer retail spending is expected to be stronger this year, particularly in U.S. and European markets. In addition, investors have clearly signaled that the much-expected recovery in smaller markets is well underway.
Price
MLS#
Tenancy
Parking
Frontage
Featured Property
$425,000
619676
Multi-Tenant
Vancant Lot & Street
300 Ft. on Beach Dr., Corner Lot
19,000
Sq. Ft. Office/Warehouse in Panama City
328 West Beach Drive
Panama City, FL
There is a combined total of 19,000 square feet of office and warehouse space available for sale at this location. This is a great location with very close proximity to the Panama City Marina which is currently undergoing a $13 Million renovation, expected to be complete by spring of 2017.
REDUCED!
9
For more information contact Matthew Abbott
office(850) 785-2233 ~ mobile(850) 814-8154