A list of the six largest commercial real estate markets by volume during the first six months of 2015 features two California cities. The list was compiled by Real Capital Analytics. Los Angeles and San Francisco were joined on the list by New York, Chicago, Atlanta and Dallas. According to data provided by the commercial property information service, commercial real estate such as office buildings, shopping malls, retail stores and warehouses are selling at a pace not seen since before the financial crisis.
The data reveals that the number of commercial real estate transactions with a value of over $2.5 million was 36 percent higher in the first half of 2015 than during the first six months of 2014. The total sales figure of $255.1 billion is higher even than the amount of property sold during the first six months of 2006. The value of the average commercial property transaction has also increased from $13.9 million in 2014 to $16.3 million in 2015.
The surge in commercial property transactions was fueled largely by sales in the six biggest markets. These cities accounted for almost a third of all commercial real estate transactions valued above $2.5 million, and sales volume in these areas was 42 percent higher in 2015 than it was during the first six months of 2014. Other markets, such as Orlando, San Antonio and St. Louis saw even larger growth.
Commercial real estate offers developers and investors the possibility of high rewards, but the transactions are often complex and difficult to complete successfully. An attorney with experience in these types of transactions could help real estate purchasers, sellers or developers to avoid disputes by reviewing contracts and identifying potentially contentious clauses.