March sees strong growth for Tri-Cities commercial real estate | Business
GRAY – Tri-Cities Commercial Real Estate had its best month in over a year in March.
Transactions increased 71.9% as a result of a dramatic increase in office activity. New registrations were up 9% year over year, according to a report by the Northeast Tennessee Association of Realtors.
The first quarter was equally strong with a 38.5% increase in transactions.
Cassie Petzoldt, chair of NETAR’s trade committee, said the momentum had picked up since the fourth quarter of last year. “It finally started last month,” she said. “Commercial real estate tends to be more macroeconomic and cyclical, and we’re seeing positive movement for both this spring.”
The sale of commercial space was the lifeblood of retail business last year. This year’s transactions are more than twice as high as in the first three months of last year.
Commercial real estate also continues to be stable. There were 34 transactions last year. There were 11 transactions in the first three months of this year, compared to nine last year. The strongest headwind is a lack of inventory.
As the economy opens up, activities in both the shopping center and retail and commercial sectors come alive. This year, retail-to-commercial transactions are up more than 40% and shopping center transactions are up almost 40%.
Commercial markets and the broader economy declined in 2020 due to an external shock rather than internal weakness. The effects of this shock are gradually wearing off, triggering the pent-up demand that has built up over the past year.
The construction of new commercial properties is also growing. According to The Market Edge’s commercial real estate trend report, 563 commercial permits were issued last year. That 8.5% increase over 2019 was the best year since 2016. The construction value for last year’s permits was $ 199.1 million.
More information is available at www.netar.us.