Metro Volume and Pricing
Sales remain slow.* No sales meeting Reis’ reporting criteria closed during the second quarter of 2012 following only two deals for $26.5 million at $136 psf the quarter before. The total for all of 2011 was $91.7 million for four transactions averaging $180 psf.
With so few single-property sales closing over the last four quarters, totals are reported for only three submarkets. The largest volume, 278,209 square feet selling for $45 million, was claimed by the Baybrook/Clear Lake submarket, all in the sale last year of Baybrook Village Shopping Center. SW/Ft. Bend County followed with 120,230 square feet selling for $15 million. At $174 psf, Innerloop NW claimed the highest average selling price for 97,761 square feet sold.
Cap Rate Comparisons and Forecasts
Reflecting the low number of sales, Reis has not reported an average cap rate by quarter since the third of 2011. The 12-month rolling cap, also reflecting few sales, was 6.3% per the latest quarter, down from 8.3% the quarter before, down from 7.1% as of second quarter 2011. Second quarter 12-month rolling caps for transactions in the Southwest and the U.S. were 7.6% and 7.8%, down from 7.9% each the quarter before.