The commercial market in King and Snohomish counties definitely slowed down in 2009
2009 East Side Commercial Sales, with roughly a fourth the sales of the previous year.
Here are highlights from the sales reported to the Commercial Brokers Association (CBA):
2009 East King County Commercial Sales
- 38 Sales compared to 158 in 2008
- Average Price: $8,156,203
- Average Size (Buildings): 71,885
- Average price/SF (Buildings): $131/SF
- Average days on market: 213 days (only some reported)
- Highest sale price: Tower 333 in Bellevue: $167,990,226 in November.
Sales were, surprisingly, spread evenly throughout the year. We expected that they sales would be weighted towards the beginning of the year 2008 showed the same pattern. This might indicate that there is actually good demand for quality commercial properties on the East Side, but that buyers are simply being more cautious and taking longer to complete transactions.
2009 Snohomish County Commercial Sales
- 49 Sales compared to 189 in 2008
- Average Price: $1,919,739
- Average Size (Buildings): 15,402
- Average price/SF (Buildings): $133/SF
- Average days on market: 265 days (only some reported)
- Highest sale price: H-Mart in Lynnwood: $24.9 million in January.
Most sales were in first half of the year, which is in-line with our expectations. This reflects that the commercial real estate market is still in a decline.
Most analysts are expecting the commercial market to worsen in the next year, repeating the pattern of the residential market, only a few months later…. as commercial real estate loans, with the common balloon payments, come due.
If you would like a detailed information on sales in your area and more directly comparable to you property, drop me a line at Jason.Hershey@century21.com.