Happy New Year from Verani Realty Commercial!
Take a quick look back at our year with us. What a year 2021 was for the commercial division! Cheers to 2022 and all of the opportunities ahead for our agents and clients! We look forward to serving you throughout the year.
January Market Update
As many people predicted, the office sector continues to be unpredictable and will likely continue on this trajectory through 2022. While we saw unprecedented per square foot sales prices, we also saw a large increase in new office listings. New office buildings aren’t being built, so it likely means that there is increased vacancies in the office sector.
The industrial sector saw a huge jump in lease rates and a huge fall in sale rates. This could just be due to some late lease/sale reporting, or it could be something else entirely. Either way, a 608% increase in average lease rates is not normal. It was reported as $1.32psf in November, which seems quite low even for industrial space. In December it skyrocketed to $8.03psf which is much more indicative of the market mid-year 2021.
The surprise this month for us was the increase in the average sale rate and the average lease rate of retail space in New Hampshire. While it wasn’t a huge increase, it does indicate some return to “normalcy”. Over the 12 months prior to the pandemic lockdown in March 2020, retail lease rates in New Hampshire were averaging $14psf. In December, they were reported as $12.66psf.
Most major commercial real estate analysts are predicting the multifamily sector will continue to see significant activity. It, along with the industrial sector, has not felt much of the effects of the COVID-19 pandemic. These two industries have continue to thrive in the ever-changing, continuously worrisome arena of commercial real estate.
The multifamily sector has seen significant activity over the last year, and December was nothing new with 16 commercial (5+ unit) closings vs. 12 closed transactions from the month prior. In a month that is notoriously low on inventory, 7 new commercial multifamily units is almost half of the number of new units listed in December 2020. However, the average asking price per unit in December 2020 was $18,000+ per unit lower than it is today.
If you would like to discuss state of commercial real estate in New Hampshire with any of our knowledgeable advisors, or are looking for help buying, selling or leasing commercial property, please give us a call at 603-845-2500 and we’ll connect you with an Advisor who can help you.
Once again, Happy New Year to you