Commercial real estate sales in metro Denver dropped 68 percent to $1.68 billion for the 12 months ended June 30, from the same period last year, according to a recent report by LoopNet Inc.Though overall sales volume was down period over period, selling prices per square foot in some property categories actually increased, often countering the national trend.
Metro-area office buildings, for example, sold for an average of $194 per foot during the recent 12-month period, compared to $165 a foot for the prior period. Per-square-foot selling prices nationwide, on the other hand, dropped during those periods — to $227 from $251.
Average selling prices for industrial buildings such as warehouses and distribution centers also rose — to $72 per square foot in the 12 months through June from $63 a foot for the previous 12-month period. Similar prices nationwide dropped in those periods, to $68 from $73.
LoopNet, an online commercial property listing service, included sales of office, industrial, retail and apartment properties of more than $2.5 million in its Denver-area data.
Here’s what local sales performance looked like, comparing the 12-month periods, by building type.
Office properties:
• $677 million in total sales volume, compared to $2.42 billion in sales for the prior-year period.
• Downtown Denver’s total sales volume ($469 million) topped suburban sales ($208 million).
• Leading buyers of office buildings included Jones Lang LaSalle Inc. (NYSE: JLL), HRPT Properties Trust (NYSE: HRP) and GDA Real Estate Services LLC.
• Leading sellers included Broadreach Capital Partners LLC, Transwestern Investment Co. and JPMorgan Chase & Company (NYSE: JPM).
• Top lenders for office deals included Goldman Sachs Group Inc. (NYSE: GS), Wachovia Corp. and FirstBank of South Jeffco.
• Biggest sales were the World Trade Center ($157.8 million/$206 per square foot), Seventeenth Street Plaza ($134.3 million/$201 psf) and Regency Plaza ($55.5 million/$179 psf).
Industrial properties:
• $261 million in total sales volume, down from $694 million period over period.
• Biggest sales included 345 Inverness Drive South ($25.7 million/$145 psf) and ProLogis Park 70/Building 8 ($19.3 million/$54 psf).
• Top buyers of industrial properties included Hines Interests LP, TA Associates Realty and JMDH Real Estate LLC.
• Major sellers included SVN Equities LLC, First Industrial Realty Trust Inc. (NYSE: FR) and Denver-based ProLogis (NYSE: PLD).
