With transactions up by 25% over last year, Frederick County CRE sales soar to over $340 million
For those of you who are regular readers of the MacRo Report Blog, you know that this post is way overdue. Here we are in the middle of April, and I’m just getting this info out. Good grief!What can I say … MacRo has been busy … and in between all that, I have been traveling – and saving that experience for future post!
So, let’s get to it.
To say the least, forecasting is an inexact science. In a post by yours truly last fall, it seemed all too predictable that 2017 was set to been a banner year for Frederick County commercial real estate sales in volume and number of deal closed. With three quarters of stats in and an average of $86 million in sales the previous 7 quarters, at that time it appeared that Frederick may be able to achieve $400 million in sales volume for the year. In addition, it seemed even more likely that the number of deals in 2017 could top 160 closed transactions.
As it turned out records were set across the board for the year with $340 million in volume (12% over the 2016 figure of $304 Million) and 165 closed deals.
The surprising stat for 2017 was the very low commercial real estate sales volume that came out of the 4th of 2017. It was only $32 million … the lowest since Q2 of 2016. But with the number of transactions at 37 for that period, it hit exactly on the average of the previous 7 quarters.
Other interesting facts
One of the most interesting statistics that come out of each year is that of the percentage of sales volume. Consider that in both 2016 and last year over 60% of the all dollar volume of all closed transactions came from just 7 out of 132 (5%) and 5 out of 165 (3%) transactions respectively in deals that exceeded $10 million dollars. On the other end of the scale 55% of all transactions in both years (73 out of 132 and 91 out of 165 transactions respectively) only yielded 6% of the sales volume on transactions under $500,000.
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