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8/05/14
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Auction.com LLC, the nation’s leading online real estate marketplace, facilitated the closing of 42 commercial assets with a combined sales value of more than $121 mil in the month of June, marking the end of a strong first half.
The majority of sales within June came from office properties, indicative of a recovery in the office market. Data from the Metro Economy and Property Ratings for summer 2014 from Auction.com Research points to recovery within the office sector, which faced a steep decline during the recession. Total office employment is up 2.4 percent over the past year, a contributing factor to the office property vacancy and rent changes seen in past quarters and a likely cause of the heightened office property transactions noted in this month’s report.
“Though the office sector is still lagging behind other property types, the recent growth in employment seems to have spurred some improvement in office rents and vacancies - even causing a slight uptick in property values,” said Rick Sharga, executive vice president at Auction.com. “This is a trend we expect to see continue as employment levels improve, since the increasing likelihood of keeping an office building fully rented is key to investors who are adding to their portfolios in the current low interest rate environment.”
Notable closings in June include:
• The L’Opera Building, a 65.5k sf office property located in Long Beach, was auctioned on May 21. The sale closed on June 24.
• Jemison Flats, a 58-unit multi-family property located in Birmingham, AL, was auctioned on May 21. The sale closed on June 23.
• A 72.2k sf office space located in Los Angeles was auctioned on June 21. The sale closed on June 23.
• Country Inn & Suites Charlotte, a 100-key select service hotel located in Charlotte, NC, was auctioned on April 23. The sale closed on June 12.
• A 76k sf Downtown Los Angeles retail building occupied by Ross Dress for Less was auctioned on March 12. The sale closed on June 12.
• Golden Triangle I & II, a 244.4k sf office property located in Greenbelt, MD, was auctioned on March 26. The sale closed on June 2.
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