Q2 2012 Sacramento, California Office Property Sales Analysis

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Q2 2012 Sacramento, California Office Property Sales Analysis


Investment in office properties increased notably in 2011 only to slow in 2012. Only $43.3 million changed hands in eight investment transactions through the first half of the year. The average selling price and mean cap rate were $110 psf and 9.2%. The 12-month rolling cap rate was 9.7%, up from 7.1% a year earlier. The total for the second quarter’s four transactions was $12.7 million.*

According to a July report in the Houston Business Journal, Houston-based firm Hines has placed a 14-building, 885,184-square-foot office property portfolio in Roseville up for sale. The five office campuses that host the properties are Douglas Corporate Center, Roseville Corporate Center, Olympus Corporate Center, Johnson Ranch Corporate Center, and Summit at Douglas Ridge. “This is trophy real estate,” a Colliers International executive told this source. “Combined, the offices are 65% occupied. No price was advertised, but brokers contacted by the Business Journal pegged their total value at $100 million to $120 million.”