Over the last three months, New Orleans’ commercial real estate has experienced an 8% increase in the supply of industrial square footage for sale, an 8% increase in shopping centers and a 17% increase in land, but a 5% decline in retail properties.
This additional supply in square footage of industrial and land is confirmed in the table below by the percent change in the number of listings, but not in the shopping center sector where the square footage increased 8.33% and the number of listings fell 8.64%. The explanation is that small size properties were leased or sold and large size properties were added.
|Percent change in number of listings, march to june 2012||13.83%||2.60%||3.35%||-8.64%||6.96%||0.00%||23.08%||30.56%|
|Number listings, March 2012||311||924||508||162||388||1||13||36|
|Number listings, June 2012||354||948||525||148||415||1||16||47|
The big surprise to most commercial property sellers is the number of days a property sits in the marketing phase, as shown in the table below. Multi-family takes the longest, at almost two years to transact, since it is an investment sale that requires more complex cash flow analysis and is usually a higher value transaction.
|Days On Market, June 2012||344||260||332||296||267||635|