According to the National Association of Realtors, commercial property sales remain highly active, in spite of lower commercial leasing numbers, particularly in the office sector.
Life and pension funds tend to be the most active commercial property sellers, accounting for approximately 26 percent of property sold in 2002, followed by Real Estate Investment Trusts (REITs). REITs rank in at 22 percent of sales.
The average commercial transaction took approximately 5.4 months in 2002, which was down from 6.2 months in 2001.
The market for commercial real estate is still hot, and with buyers tapping unconventional lenders, such as private loan lenders, to purchase commercial investment property, it’s unlikely that this market will cool off anytime soon.
Information from the National Association of Realtors’ Commercial Issues July 2, 2003 issue was used for this report.