Auction.com facilitated the closing of 73 commercial assets throughout October with a total combined value of more than $281 million. As shown by two notable transactions in Denver, Colorado and Hartford, Connecticut, the office sector is experiencing upward momentum in prices.
According to the Q3 2014 Commercial Real Estate (CRE) Market Monitor™ released by Auction.com, office prices are up 15.5 percent from one year ago.
“Because of increased office prices, the sector provides a high level of investment safety that draws in a great deal of investors, especially in secondary markets,” said Rick Sharga, executive vice president of Auction.com. “These secondary markets offer an additional value of economic stability from foreign capital that other investors look for while purchasing property.”
Foreign investors are also taking note of the different benefits urbanized secondary markets bring to the office market such as low vacancy rates and its surrounding amenities. According to recent reports, Denver ranked number nine of the top 10 U.S. markets for Canadian capital with more than $101 million invested during the first half of 2014.
The most prominent office closing during October was the Tamarac Plaza, a 355,269-square-foot office campus on 11.75 acres of land located in Denver, which sold for 105 percent of the reserve price. The asset was auctioned on Sept. 17 and closed Oct. 30.
Other notable closings from other sectors in October include:
CityPlace2, an 18-story office tower located in Hartford, Connecticut, was auctioned on Aug. 27. The sale closed on Oct. 2.
Eastern Marketplace, a 56,462-square-foot retail center located in Henderson, Nevada, was auctioned on Sept. 17. The sale closed on Oct. 22.
Waretech Industrial Park, a 667,593-square-foot industrial property located in Grand Blank, Michigan, was auctioned on Sept. 4. The sale closed on Oct. 3.
Country Inn & Suites – Appleton, a 106-key limited service hotel located in Appleton, Wisconsin, was auctioned Aug. 13. The sale closed on Oct. 31.
Baymont Inn & Suites – Knoxville, a 122-room hotel located in Knoxville, Tennessee, was auctioned July 30. The sale closed on Oct. 1.
The Auction.com online platform offers complete transparency to the large pool of bidders it attracts from around the world. In turn, the competition among qualified buyers ensures that sellers’ assets are transacted at fair market value. Auction.com enables buyers and sellers to conduct transactions in a more efficient manner than previously possible by leveraging internet technology to streamline what has traditionally been a cumbersome, complicated and paperwork-intense process.
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