Fredericksburg, VA Market TrendsBETA

For office properties in the metro area, the average asking price was $219.44 per square foot for the month. This is down 5.3% from the previous year, and down 1.4% from the end of the fourth quarter of 2011. This month, asking prices for office properties have fallen to a new three-year low. The previous three-year low was last month at $221.74.

The average asking price for industrial properties in the metro area was $110.05 per square foot for the month. This shows a drop of 3.6% year-over-year, and a decline of 0.1% from the end of the fourth quarter of 2011. In June 2007, the asking prices for industrial properties were at their highest in the past three years at $159.79 per square foot. The current median asking price is 16.8% lower. On the other hand, the lowest asking price in the past three years was seen in January 2012 at $109.51.

Asking prices for retail properties rose to $220.12 per square foot, a 2.3% increase compared with the end of the prior quarter. For the year, asking prices have fallen 6.4% on the year. Asking prices for retail properties reached a three-year high in December 2006 at $276.87 per square foot. In comparison, the median asking price is now 6.1% lower. The lowest asking price over the past three years was $215.27 in December 2011.

Sale prices for multifamily properties in the metro area appear to have a seasonal cylce to them. The highs in the cycle tend to occur around June and the lows come around December. Over the past year sale prices have risen 9.5% to $106,714 per unit. The average sale price for the preceding 12 months has risen by 9.5%. Over the past three years, the median sale price reached its highest of $133,027 in June 2009. The current median sale price is 19.8% lower. However, the current price is 15.7% higher than the June 2011 figure, which was the three-year low. This is the tenth month in a row that the median sale price for the metro multifamily properties has increased. The increasing streak began in June 2011, at which time the median sale price was $92,212.

The median sale price per square foot for office properties in the metro area has been falling for two straight months, dropping 0.1% during that time. Previously, sale prices rose 9.1% over a five-month period ending in February. Sale prices per square foot for office properties rose to $238.72, a 4% increase compared with the end of the prior quarter. Similarly, for the preceding 12 months, sale prices have increased by 2.8%. The three-year-high in median sale price was set in April 2009 at $280.02. In comparison, the median sale price is now 14.8% lower. However, the current price is 10.5% higher than the October 2010 figure, which was the three-year low.

Compared to the end of the prior quarter, sale prices per square foot for industrial properties have risen 7% to $106.43. Sale prices have seen an increase of 3.5% for the previous year. The highest median sale price over the past three years, which was $127.90, was set in November 2009. In comparison, the current median sale price is down by 16.8%. However, the current price is 13.5% higher than the three-year-low of $93.76, which was set in June 2011. The median sale price of the industrial properties in the metro area has grown for the third straight month. When the streak started in January 2012, the median sale price was $99.25.

The median sale price per square foot for retail properties in the metro area has been rising for two straight months, climbing 1.2% during that time. Prior to that, sale prices fell 13.8% over a 13-month period ending in February. Sale prices per square foot for retail properties are $204.55, representing a 0.5% decrease from the end of the prior quarter. Comparably, sale prices are down 11.6% for the past 12 months. The highest median sale price over the past three years was $264.63, which was set in May 2009. The current median sale price is 22.7% lower. However, the current price is 1.2% higher than the three-year-low set in February 2012.

This is the eighth month of a month-over-month downward trend in available multifamily properties in the metro area, a 17.9% decline. There has been a 12.7% drop in available multifamily properties over the past year in the Washington Metro Area.

For the past two months, the number of of office properties for sale has been on the rise month-over-month, increasing 0.3% over that period. Over the past year, the number of office properties available in the Washington Metro Area has gone up by 1.5%.

Available industrial properties have fallen for the past two months month-over-month, a 0.5% decline. In the past year, the Washington Metro Area has seen a 4.2% decline in the number of available industrial properties.

Available retail properties have fallen for the past eight months month-over-month, a 6.8% decline, but have not countered the 0.6% increase seen over the past year.

Interest in multifamily properties listed on LoopNet in the Washington Metro Area has increased this quarter, rising 1.2% since December 2011, 16.3 percentage points less than the 17.5% increase in the national average. However, the interest for multifamily properties listed fell 3.9% over the past year. The yearly change ranks the Washington Metro Area thirty-ninth out of the top 48 metros.

Demand on LoopNet for office properties spiked in the Washington Metro Area market, rising 28.4% since December 2011, 6.6 percentage points more than the 21.8% increase in the national average. Demand for office properties also increased by 25.6% over the past year. The yearly change ranks the Washington Metro Area eighteenth out of the top 48 metros.

Demand on LoopNet for industrial properties spiked in the Washington Metro Area market, rising 21.7% since December 2011, 0.7 percentage points less than the 22.4% increase in the national average. Demand for industrial properties also increased by 26% over the past year. The yearly change ranks the Washington Metro Area twenty-second out of the top 48 metros.

Demand on LoopNet for retail properties spiked in the Washington Metro Area market, rising 33.9% since December 2011, 14.3 percentage points more than the 19.6% increase in the national average. Demand for retail properties also increased by 25.5% over the past year. The yearly change ranks the Washington Metro Area twenty-first out of the top 48 metros.

The square footage available for sale marks a 3.2% decline over the past year. The rise in supply, combined with the drop in days on market, makes it seem that market conditions are bringing buyers back in. Also, the rise in supply and sale prices makes it appear that more suppliers are coming into the market to take advantage of the rising prices.

The available square footage in the metro area has fallen two months in a row month-over-month for industrial properties, dropping 1.6% over that period. However, this did not offset the increase of 1% over the past year. Square footage for industrial properties has risen 0.2% versus the end of last quarter. For the year, square footage is up 1%. The drop in supply and the rise in days on market could be an indicator that people are currently holding off putting their properties up for sale in the current economic climate. A decrease in supply also appears to be making the market more favorable for sellers, which could be why prices are going up.

The square footage available for sale for retail properties have been on the rise month-over-month for three consecutive months. Square footage for retail properties has risen 1.9% versus the end of last quarter. For the year, square footage is up 8.4%. The square footage available for sale for retail properties in the metro area has risen 8.4% over the past year. The rise in supply, combined with the drop in days on market, makes it seem that market conditions are bringing buyers back in. The rise in supply also seems to be putting downward pressure on sale prices, which could be why they have fallen lately.

Over the past two months, multifamily properties has seen a steady increase of 1.3% available in number of units in the metro area. This was insufficient to offset the 10.7% decrease of the past year. The number of units available for sale for multifamily properties in the metro area decreased 10.7% year-over-year and 15% compared to the end of the fourth quarter of 2011. The drop in supply and the rise in days on market could be an indicator that people are currently holding off putting their properties up for sale in the current economic climate. A decrease in supply also appears to be making the market more favorable for sellers, which could be why prices are going up.

The time on market for multifamily properties in the metro area is up year-over-year, and this change is worse than that for the market in Virginia over the same time period. Multifamily properties are now on the market for 173 days, up 8.5% from the same month last year. This month represents a new high for days on market in the metro area. The previous high was established in April 2011 at 161 days. The time on the market of multifamily properties has now increased 29% for the past four months.

Days on market for office properties in the Washington Metro Area fell 5.6% from last year, to 198 days. Overall in Virginia the time on market has dropped by 5.3% during the same time period. Metro days on market is down 18.5% from its highest point in July 2011. The time on the market of office properties has been on the rise over the past four months, increasing 8.1%.

The days on market for industrial properties in the Washington Metro Area have increased year-over-year, and this change is smaller than that on the state-level overall. Properties now take 257 days before turning over, which is 4.5% longer than the same month last year. Compared with April 2009, when the time on market was at its lowest, these properties are now on the market 45.4% longer.

Over the past year, the time on market for retail properties in the Washington Metro Area has decreased 16% to 157 days. During the same time period, the time on market for these properties at the state level has fallen even more as a percentage, by 40.5%, to 133. This month marks a new low for days on market in the metro area.

Lease rates for office properties have gone up from the end of last quarter, rising 2.1% to $25.17 per square foot. For the year, asking lease rates have gone up 4.9%. Lease rates for office properties reached a three-year high in September 2006 at $25.54 per square foot. In comparison, the current median asking price is down by 0.4%. The lowest asking lease rate over the past three years was $21.94 in May 2009.

For industrial properties in the metro area, the average asking lease rate was $8.65 per square foot for the month. This is down 3.9% from the previous year, and down 1.4% from the end of the fourth quarter of 2011. Asking rates for industrial properties reached a three-year high in January 2008 at $10.88 per square foot. In comparison, the median asking price is now 0% lower. The lowest asking lease rate over the past three years was $8.65 in December 2005.

Asking lease rates for retail properties rose to $23.36 per square foot, a 2.2% increase compared with the end of the last quarter. Asking rates rose 4.2% over the past year. Lease rates for retail properties hit a three-year peak in April 2007 at $26.42 per square foot. The current median asking lease rate is 10.1% lower. The lowest asking lease rate in the past three years was $22.26 set in July 2011.

The number of office spaces available in the metro area has fallen two months in a row month-over-month, declining 0.8%. The number of office spaces available in the Washington Metro Area has fallen 1.2% over the past year.

The number of industrial properties for lease in the metro area has been rising two months in a row month-over-month, moving up 0.6% in that time. However, this has yet to offset the drop of 5.4% over the past year.

For the past two months, the number of of retail properties for lease has been on the rise month-over-month, increasing 0.6% over that period, but it was not enough to offset the 0.7% decline seen in the past year.

Demand on LoopNet for office properties spiked in the Washington Metro Area market, rising 31.3% since December 2011, 2.6 percentage points more than the 28.8% increase in the national average. Demand for office properties also increased by 27.5% over the past year. The yearly change ranks the Washington Metro Area thirty-second out of the top 48 metros.

Demand on LoopNet for industrial properties spiked in the Washington Metro Area market, rising 30.8% since December 2011, five percentage points more than the 25.8% increase in the national average. Demand for industrial properties also increased by 27.7% over the past year. The yearly change ranks the Washington Metro Area twenty-third out of the top 48 metros.

Demand on LoopNet for retail properties spiked in the Washington Metro Area market, rising 23.3% since December 2011, two percentage points less than the 25.3% increase in the national average. Demand for retail properties also increased by 19.7% over the past year. The yearly change ranks the Washington Metro Area thirty-fourth out of the top 48 metros.

The available square footage in the metro area is in a two month downward trend month-over-month for office properties, falling 2.4% in that time. This was insufficient to offset the 5.5% upward movement seen over the past year. Square footage for office properties has risen 7.1% versus the end of last quarter. For the year, square footage is up 5.5%.

This is the fifth consecutive month that square footage available has declined month-over-month for industrial properties. The square footage available for industrial properties in the metro area represents a 2.8% decline over the past year.

There has been a two month upward trend in available square footage for retail properties, representing a 2.1% upward trend, but it was not enough to offset the 5.3% decline seen in the past year. The square footage available for retail properties in the metro area decreased 5.3% year-over-year and 1.4% compared to the end of the fourth quarter of 2011.

Office properties in the Washington Metro Area are turning over faster than the same time last year, as the days on market slid 20.2% to 167 days. Overall in Virginia the time on market has dropped even further as a percentage, by 27.2%, to 189 during the same time period. This month, days on market in the metro area fell to a new lowest point.

Industrial properties in the Washington Metro Area are staying on the market longer than they did during the same time last year, and the change is greater than that at the state level. They now last 226 days on the market at the metro level, an increase of 8% year-over-year. In comparison, they last 243 days at the state level, up 3.2% from last year. From the lowest point, which was set in April 2009, time on market has risen 36.1%.

Compared with a year earlier, retail properties in the Washington Metro Area are staying on the market longer, and the gap is greater at the metro level than at the state level. They are now on the market for 296 days before being sold, 57.3% longer than last year. In comparison, these buildings last 280 days at the state level, 1.5% longer than last year. Days on market for the metro area hit a new high this month. Previously, the longest these properties would last on market was for 282 days, a high established in August 2009. The time that retail properties stay on the market in the metro area has been increasing every month for the past five months.