Home Real Estate STNL For-Sale Inventory Posts Big Jump in Q3
Real Estate

STNL For-Sale Inventory Posts Big Jump in Q3


The single-tenant market experienced a remarkable quarter-over-quarter surge in supply during the third quarter, B+E reported. While Q2 ended with 3,286 properties listed on the market, that tally increased by nearly 19% to 3,905 during Q3. 

The increase in supply can be partially attributed to a significant influx of new listings, according to B+E’s Q3 cap rate report. 1,236 properties were brought to market in Q3, or 31.7% of the current supply.  

“New inventory is coming in twice as fast as it’s leaving the market,” the report states. From Q2 to Q3, 580 listings were either taken off the market or sold, less than half of new supply.  

“That being said, an alarming 15.3% of the current supply has been sitting on the market for over a year,” according to B+E. Of the properties that have been listed for more than a year, 43.7% have a cap rate below 5.50%. Among properties on the market for less than a year, just 27% have a cap rate lower than 5.50%.  

“Few properties are penciling at a 5.50% cap or lower, indicating challenges in finalizing transactions due to rising interest rates,” states the report. 



Source link

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Real Estate

Memphis Dermon Building Converting to 150-Room Hotel

The Dermon Building in Memphis was built 99 years ago, designed as...

Real Estate

Developer Duo Secures $120M Refi for Charleston Harbor Rental Community

Woodfield Investments and Argosy Real Estate Partners have secured $120 million to...

Real Estate

Bonita Springs Site for 252-Unit Apartment Community

Madison Communities and Heitman have closed a $44 million construction loan for...

Real Estate

$21.5M Loan for Tacoma Apartments Secured by Berkadia

Berkadia has secured financing for the acquisition of The Duo Apartments, a...