Some Comparisons: Small and Large Commercial Real Estate Transactions

Sales Vol

The investment sales markets for large and small commercial buildings are distinctively different.  NAR’s Commercial Real Estate Market Trends report summarizes sales and rental activity based on a quarterly survey of commercial REALTOR® practitioners[1].  A second report, NAR’s yearly Commercial Lending Survey report provides information on commercial real estate financial issues addressed by REALTORS®.[2]  Both reports present commercial real estate information generally not available elsewhere: the average commercial transaction size in markets served by REALTORS® has been about $1.6 million, significantly below the $2.5 million threshold typically used by major databases in providing information on commercial transactions.  Although many REALTORS® participate in transactions above the $2.5 million threshold, in general REALTORS® report that they serve a segment of the commercial real estate market for which data are generally not reported—Small Commercial Real Estate transactions (SCRE) under $2.5 million, in cntrast to Large Commercial Real Estate transactions (LCRE) over $2.5 million.

View entire article at National Association of Realtors website.

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