The S.I.R.E. Report
February 2007
Provided by Sheryl A. Smith, CCIM, CEO of Smith Real Estate Services
The national view tells us that real estate remains a “darling” of investors. However, since real estate is a local business, here is a look at Sacramento specifically.
Sacramento Retail
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Street Retail had the highest average asking rent of $2.17psf/mo.
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Average Asking Sales Prices are flat as compared to Aug 2006, across all retail property types.
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About 51% of the listed retail properties are between 5,000-24,999 sf.
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14th lowest retail vacancy market (6.2%) in the USA in 2006.
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5th highest average retail rent ($2.13 psf/mo) in USA, across all property types.
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Net absorption in 2006 14,000sf
Average Asking Price by retail building size
5,000-9,999sf $265 psf (28.7% of available property listed)
10,000-24,999sf $222 psf (22% of available property listed)
25,000-49,999sf $199 psf (6.1% of available property listed)
Snapshot: Compared to last month, average rents are slightly up and asking prices are ever so slightly down. Even though there is about 5% more product listed, there is still only about 1.3msf listed. Now would be a great time to sell! Call me today for a free investment analysis of your property.
Sacramento Industrial
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Flex/R&D had the highest average asking rent of $0.93psf/mo.
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Average Asking Sales Prices have gone up about 4.6% since Aug 2006, across all industrial property types.
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About 60.5% of the listed industrial properties are between 5,000-24,999 sf.
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Net absorption in 2006 1,001,000sf
Average Asking Price by industrial building size
5,000-9,999sf $144 psf (26% of available property listed)
10,000-24,999sf $128 psf (34.5% of available property listed)
25,000-49,999sf $ 97 psf (9.4% of available property listed)
Snapshot: Compared to last month, average rents are down, asking prices up. There is about 5.8 msf of inventory listed, which is about 5% less than last month.
Sacramento Office
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Office buildings had the highest average asking rent of $1.82psf/mo.
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Average Asking Sales Prices have gone up about 1.5% since Aug 2006, across all office property types.
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About 70% of the listed office properties are between 0-9,999sf.
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Net absorption in 2006 804,000sf
Average Asking Price by office building size
0-5,000sf $356 psf (45.7% of available property listed)
5,000-9,999sf $287 psf (24.2% of available property listed)
10,000-24,999sf $247 psf (20.1% of available property listed)
Snapshot: Compared to last month, average rents and asking prices are flat. There is about 4.6msf of inventory listed, which is down about 4.7%.
Sacramento Multi-Family
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Du/Tri/Fourplexes had the highest average asking sales price of $188,238 per unit.
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Average Asking Sales Prices are flat as compared to Aug 2006 prices, across all multi-family property types.
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About 66% of the listed multi-family properties are between 1-9 units.
Average Asking Price by unit mix
>5 units $189,061 per unit (51.6% of available property listed)
5-9 units $113,434 per unit (14.4% of available property listed)
10-19 units $104,240 per unit (9.2% of available property listed)
Snapshot: Compared to last month, average asking prices and inventories are both significantly down. Lots of inventory on the market…about 4.3msf.
Western Region Average Cap Rate
Office 6.9%
Industrial 7.3%
Retail 6.4%
Multi Family 5.4%
The S.I.R.E. Report is published monthly with results from the previous month. Stay current on property in Sacramento. Sign up to receive my posts by automatic email each month.
Sources: Loopnet Local Insights & the NAR Commercial Real Estate Outlook Reports
This entry was posted on Saturday, February 17th, 2007 at 10:29 am and is filed under Investments, Investment Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
3 Responses to “Sacramento Investment Real Estate Report”-
Viewed.mobi » Sacramento Investment Real Estate Feb 2007 Says:
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