CBA SALES OVERVIEW & FULL RESEARCH REPORT
THE MOMENTUM OF THE MARKET RECOVERY THAT STARTED IN THE FIRST QUARTER GROWS INTO THE SECOND QUARTER WITH POSITIVE NUMBERS ACROSS THE BOARD
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. In this report, we compare same-month and total quarterly sales by asset class and county from 2020 to 2021.
Summary Highlights of Q2 2021:
- Commercial property sales in all six counties and all asset classes tracked by CBA are up significantly this year.
- Number of sales far outpaces 2020 and compares to any period during the record-breaking “banner” the year of 2019, excluding December.
- Unsurprisingly, sales volume substantially exceeds 2020, but only marginally trails behind 2019, showing the strength of the market rebound and recovery.
CBA'S Q2 REPORT OVERVIEW:
In this report, we compare same-month, total quarterly, and year-to-date sales numbers by asset class and county from 2019, 2020, and 2021.
The Second Quarter of 2020 marked the start of the COVID-19 lockdown and the subsequent massive economic downturn, which stopped the CRE market in its tracks. It is natural, then, that there is a huge discrepancy in numbers when comparing it to Q2 2021. What is most encouraging, though, is that Q2 2021 numbers stack up favorably against 2019 numbers, as well. Q2 2021 sales velocity was up 158%, and sales volume was up 246% compared to the same period in 2020. Compared to 2019, Q2 transaction velocity was up 5%, and dollar volume was down only 15%.
Overall year-to-date, all asset classes are up compared to 2020. Dollar volume in Office is up 97.4%, Retail (141.8%), Land (70.8%), Multifamily (115.2%), and Industrial/Flex leads the charge with a huge gain of 287.9%. Gains in sales transaction velocity were: Office (129.1%), Retail (60.5%), Industrial/Flex (87.8%), Land (28.7%), and Multifamily at 51.9%.
By county, sale volume saw the biggest increases in Snohomish (279.9%) and Spokane (230.5%), followed by King (123%), Kitsap (106.8%), Pierce (106%), and Thurston (52.1%). Increases to the number of transactions were: King (44.6%), Snohomish (100%), Pierce (85.6%), Spokane (114.8%), Kitsap (19.2%), and Thurston (93.8%).
In 2019, large-scale notable sales (i.e., 9-figure sale prices) were predominantly in Multifamily and Office asset classes, with some Industrial/Flex sprinkled in. Then, in 2020 due to the increase in the state’s Real Estate Excise Tax (REET) and COVID-related economic shutdown and market freeze, notable sales were fewer and far between and often either delayed or pulled from the market. However, this year we have seen the return of the big deals. 2021’s largest deal year-to-date is 300 Pine St. (Former Macy’s), with the office portion selling for $474.4m and the retail portion selling for $105m. Unlike the past couple of years, 2021 has seen more Industrial/Flex deals, (Canyon Bus Ctr, $200m, Willows Commerce Park $140m, GIX, $85m) with only a couple of large-scale Multifamily deals (Hyde Square, $279m and Avalon Redmond Place, $98m).
In conclusion, during the first half of 2021, the commercial property sales market recovered favorably in Washington, particularly for sellers, with premium prices and lower cap rates. Unless the COVID-19 Delta variant forces another round of economic restrictions or shutdowns across the state, we expect the economy to remain strong and healthy and expect to see robust sales across all asset classes through the remainder of 2021.
CBA'S FULL REPORT OF RESEARCHED SALES FROM 2010 - PRESENT:
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:
CMA SALES REPORT Q1 (2021 V. 2019-2020)