Multifamily was the strongest segment during the second quarter, posting three of the top five deals and over 700,000 square feet sold.
Second quarter sales of Frederick County commercial real estate kept pace with the same time period last year, an encouraging sign that the local commercial market remains stable despite mixed economic signals nationwide. Second quarter 2014 commercial real estate sales in Frederick totaled $117.5 million, versus $119.5 for the second quarter last year and $19.5 million for the second quarter of 2012.
There were three large multifamily deals in Frederick during the quarter, as that segment continues to draw the most interest from REITs and national investment firms. (MacRo Report will detail the top deals of the second quarter in a future post).
Industrial and warehouse properties placed a strong second, which reflects the activity we are seeing on the local level as small to medium-sized businesses are moving forward with long-postponed decisions regarding leasing and buying warehouse and flex space. In reviewing second quarter transactions, it was interesting to note that there were several transactions in the municipalities of Brunswick and Thurmont, an indication that activity in the commercial market is increasing throughout the entire county.
It was a busy quarter for commercial land sales as well, with double the number of transactions (but only 35 acres sold); the median price was $203,098 per acre. That compares to 238 acres during the same quarter last year, at a median price of $90,000 per acre.
Note: Statistics provided for commercial property sales in this report are based on thorough research of every recorded commercial sales transaction listed in SDAT for the quarter reported, and are deemed reliable.
The author: Kathy Krach is a commercial sales and leasing agent with MacRo.