CBA SALES OVERVIEW & FULL RESEARCH REPORT
CBA's Commercial Market Analysis (CMA) Sales Report analyzes quarterly economic and commercial real estate sales activity and trends at the market and submarket levels. We are pleased to offer this detailed analysis and report for your use and interpretation.
As most CRE professionals know, 2019 was a record-breaking year for commercial property sales in Washington. A strong economy coupled with the rush of commercial property sales to beat Washington’s increased Real Estate Excise Tax (REET) that was taking effect in 2020 fueled the market to new heights. At the beginning of 2020, CBA expected a slowdown of CRE sales due to the increase in REET. But, then in March, the addition of the COVID-19 pandemic lockdowns led to months of restrictions on Commercial Real Estate activity, providing further headwinds for commercial sales and investor activity. Despite additional lockdowns in the 4th quarter, commercial real estate sales rebounded and surged, particularly in December.
In this report, we compare same-month sales by asset class and county from 2019 to 2020. In addition, we have provided a historical view of commercial sales over the past decade to provide the context of how the COVID-19 induced economic downturn of 2020 has impacted the market, particularly in comparison to the low points the market experienced coming out of the Great Recession.
CBA'S Q4 OVERVIEW:
The 4th quarter was the most productive of the year in both the number of sales transactions and sales volume. Over 37% of sales transactions and over 50% of sales volume for the entire year happened in the 4th quarter, with 37% of that volume coming in December alone. Notable deals like the 2+U Tower and 1918 8th Avenue helped keep things afloat, but overall numbers still pale in comparison to 2019.
Overall, Office (-47.6%), Retail (-43.3%) and Multifamily (-43.0%) showed the biggest drops in volume compared to 2019. These figures gained ground in the 4th quarter as drops were hovering around the 60%-80% range for much of the year. Industrial/Flex (-28.9%) and Land (-17.5%) were impacted less compared to 2019, with these percentages remaining fairly consistent throughout 2020.
Considering how significant the COVID-19 economic downturn has been, it is interesting to note that in terms of sales volume and number of transactions, 2020 was only the 4th worst year since 2010. It is also worth noting that the years of 2010, 2011, and 2012 all had lower numbers of sale transactions and dollar volume.
CBA researches office, retail, industrial, and land sales, $250,000 or more, in King, Snohomish, Pierce, Spokane, Kitsap, and Thurston counties. Multi-family sales of $250,000+, and 5-units or more are researched in King, Pierce, and Snohomish counties. All the raw data provided in our reports are pulled directly from the CBAcma database.
For questions about the reports or to learn how CBA members can request and use this data, please contact Binh Truong, Director of Market and Sales Data, via email or 425-952-2727.
ARCHIVED CBA SALES REPORTS
Reference previously archived CBA Sales Reports here: