Retail Property Asking Price Index – Sale Trends

Randolph J. Taylor MBA, CCIM, Broker
Coldwell Banker Commercial 

The average asking price for retail properties in the metro area was $118.85 per square foot for the month. This shows a drop of 2.8% year-over-year, and a decline of 0.7% from the end of the second quarter of 2012. In December 2008, the asking prices for retail properties were at their highest in the past three years at $179.76 per square foot. The current median asking price is 27.2% lower. On the other hand, the lowest asking price in the past three years was seen in August 2012 at $118.39.

Retail Property Asking Price Index - Sale Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property Sales Price – Sale Trends

The median sale price per square foot for retail properties in the metro area has risen 11.7%. Earlier, there was a eight-month period that ended in May when sale prices fell 21.8%. Sale prices per square foot for retail properties have seen an increase to $81.86, up 11.4% compared with the last quarter. During the past year, though, sale prices have dropped by 12.3%. Over the past three years, the median sale price was at its highest in March 2010 at $126.56. In comparison, the median sale price is now 35.3% lower. However, the current price is 11.7% higher than the May 2012 figure, which was the three-year low.

Retail Property Sale Prices - Sale Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property Total $ Available For Sale – Sale Trends

Retail Property Total $ Available For Sale - Sale Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property No. of Listings – Sale Trends

For the past two months, the number of of retail properties for sale has been on the rise month-over-month, increasing 1.6% over that period. The number of available retail properties has risen by 0.1% in the Chicago Metro Area over the past year.

Retail Property No. of Listings - Sale Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property Profile Views (Demand) – Sale Trends

Demand on LoopNet for retail properties spiked in the Chicago Metro Area market, rising 9.7% since June 2012, 5.5 percentage points more than the 4.2% increase in the national average. Demand for retail properties also increased by 22.8% over the past year. The yearly change ranks the Chicago Metro Area twenty-third out of the top 48 metros.

Retail Property Profile Views (Demand) - Sale Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property Total SF Available – Sale Trends

This is the second month of a 2.7% decline in available square footage for retail properties. This, however, did not offset the 0.5% increase of the past year. The rise in supply, combined with the drop in days on market, makes it seem that market conditions are bringing buyers back in. The rise in supply also seems to be putting downward pressure on sale prices, which could be why they have fallen lately.

Retail Property Total SF Available - Sale Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property Days on Market – Sale Trends

The time on market for retail properties in the Chicago Metro Area has fallen 23% from last year, to 204 days. During the same time period, the time on market for these properties at the state level has fallen even more as a percentage, by 23.1%, to 187. Compared with September 2011, when days on market was at its highest, they’ve now fallen 23%.

Retail Property Days on Market - Sale Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property Asking Rent – Lease Trends

Asking rates for retail properties have risen 0.1% versus last quarter to $15.94 per square foot. For the year, lease rates have fallen 1.5% on the year. Asking lease rates for retail properties hit a three-year peak in March 2008 at $20.16 per square foot. The current median asking lease rate is 17.6% lower. The lowest asking lease rate in the past three years was $15.90 set in April 2012.

Retail Property Asking Rent - Lease Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property No. of Spaces – Lease Trends

This is the second month of an increase in retail properties for lease in the metro area, representing a 1.2% increase. This was insufficient to offset the 2.4% decrease of the past year.

Retail Property No. of Spaces - Lease Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property Profile Views (Demand) – Lease Trends

Interest on LoopNet for retail properties in the Chicago Metro Area has fallen by 13.5% since June 2012, 2.2 percentage points more than the 15.7% decrease in the national average. Additionally, demand tumbled 2.9% over the past year. The yearly change ranks the Chicago Metro Area twenty-first out of the top 48 metros.

Retail Property Profile Views (Demand) - Lease Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property Total SF Available – Lease Trends

The square footage available in the metro area is in a six month downward trend month-over-month for retail properties. The square footage available for retail properties in the metro area decreased 16.8% year-over-year and 4.1% compared to the end of the second quarter of 2012. September showed a new three-year low of square footage available in the metro area. The previous low was reached last month. The current square footage available reflects a 16.8% fall in the metro area over the past year.

Retail Property Total SF Available - Lease Trends

 

 

 

 

 

 

 

 

 

 

 

Retail Property Days on Market – Lease Trends

Retail properties in the Chicago Metro Area are on the market longer compared with the same month last year, and this gap is greater than that at the state level. They are now on the market for 323 days before turning over, which is 0.6% longer than last year. Meanwhile, the days on market at the state-level has dropped 0.3% to 318 days. From the lowest point, which was set in January 2011, time on market has risen 15.7%.

Retail Property Days on Market - Lease Trends

 

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