Germantown, TN Market TrendsBETA

Asking prices for multifamily properties have fallen 0.4% to $28,549 per unit over the past quarter. However, over the past year asking price have risen 7.8%. Asking prices for multifamily properties hit a three-year peak in December 2005 at $41,359 per unit. In comparison, the median asking price is now 31% lower. The lowest asking price in the past three years was $23,569 set in March 2010.

For office properties in the metro area, the average asking price was $88.32 per square foot for the month. This is down 1.1% from the previous year, and down 2.2% from the end of the fourth quarter of 2011. Asking prices for office properties hit a three-year peak in June 2008 at $106.13 per square foot. The current median asking price is 22.6% lower. On the other hand, the lowest asking price in the past three years was seen in December 2005 at $72.06.

The average asking price for industrial properties in the metro area was $32.60 per square foot for the month. This represents a decrease of 0.5% year-over-year as well as a decrease of 2.8% compared to the end of the fourth quarter of 2011. Asking prices for industrial properties reached a three-year high in September 2009 at $38.58 per square foot. The current median asking price is 7.7% lower. On the other hand, the lowest asking price in the past three years was seen in June 2006 at $28.75.

Asking prices for retail properties have risen 2.9% versus last quarter to $94.91 per square foot. Meanwhile, asking prices for the year have dropped by 5.7%. In February 2009, the asking prices for retail properties were at their highest in the past three years at $127.47 per square foot. In comparison, the median asking price is now 0.6% lower. The lowest asking price in the past three years was $91.70 set in January 2012.

Sale prices for multifamily properties in the metro area appear to have a seasonal cycle to them. The highs in the cycle tend to occur around November and the lows come around May. Over the past year sale prices have fallen 24.1% to $13,183 per unit. For the past three months, the median sale price per unit for multifamily properties in the metro area has risen 2.1%. Prior to that, sale prices fell 11.1% over a five-month period ending in January. The highest median sale price over the past three years was $38,334, which was set in April 2010. The current median sale price is 65.6% lower. However, the current price is 2.1% higher than the three-year-low set last month.

Sale prices per square foot for retail properties dipped to $44.24, a 17.3% decrease compared with the end of the prior quarter. Comparably, sale prices are down 48.8% for the past 12 months. The median sale price of retail properties in the metro area has fallen for the fourth successive month. The falling streak began in the first month of the current three-year period, at which time the median price was $53.50. The metro median sale price for this month represents a three-year low. The previous low was $47.80, which was set last month.

This is the third month of an increase in multifamily properties for sale in the metro area, representing a 8.6% increase. This was insufficient to offset the 3.4% decrease of the past year.

This is the second month of an increase in office properties for sale in the metro area, representing a 1.2% increase. The number of available properties in the Memphis Metro Area for the month of March represents a three-year high. The previous high was set in January 2012. The Memphis Metro Area has seen a 7.4% rise in the number of available office properties over the past year.

For the past two months, the number of of industrial properties for sale has been on the rise month-over-month, increasing 0.3% over that period. This month in the Memphis Metro Area, industrial properties available hit a new three-year high. Industrial properties available was at its previous high in January 2012. The current number of industrial properties available in the Memphis Metro Area reflects a 18.6% increase over the past year.

Available retail for sale have been on the rise for the past two months month-over-month, a 0.5% increase overall. This, however, has yet to offset the 11.8% drop seen in the past year.

Interest in multifamily properties listed on LoopNet has fallen 8.2% over the past year. The change ranks forty-fifth out of the top 48 metros. Interest in multifamily properties listed on LoopNet in the Memphis Metro Area has increased this quarter, rising 28.2% since December 2011, 10.7 percentage points more than the 17.5% increase in the national average.

Demand on LoopNet for office properties spiked in the Memphis Metro Area market, rising 20.2% since December 2011, 1.6 percentage points less than the 21.8% increase in the national average. Demand for office properties also increased by 24.1% over the past year. The yearly change ranks the Memphis Metro Area twenty-third out of the top 48 metros.

Demand on LoopNet for industrial properties spiked in the Memphis Metro Area market, rising 32.3% since December 2011, 9.9 percentage points more than the 22.4% increase in the national average. Demand for industrial properties also increased by 41.2% over the past year. The yearly change ranks the Memphis Metro Area ninth out of the top 48 metros.

Demand on LoopNet for retail properties spiked in the Memphis Metro Area market, rising 16.9% since December 2011, 2.7 percentage points less than the 19.6% increase in the national average. Demand for retail properties also increased by 12.4% over the past year. The yearly change ranks the Memphis Metro Area thirty-seventh out of the top 48 metros.

Over the past two months, office properties have seen a steady increase in available square footage for sale in the metro area. Square footage for office properties has risen 4% versus the end of last quarter. For the year, square footage is up 7.1%. The square footage available in the metro area reached a new three-year high in the month of March. The previous high was set in April 2011. The square footage available for sale for office properties in the metro area has risen 7.1% over the past year. Soft market conditions are likely to persist as inventory is staying on the market longer.

There has been a three month upward trend month-over-month in available square footage for sale for industrial properties. Square footage for industrial properties has risen 12.7% versus the end of last quarter. For the year, square footage is up 17.1%. The square footage available in the metro area for the month of March represents a three-year high. Previously, it was at its highest point in September 2011. The square footage available for sale for industrial properties in the metro area has risen 17.1% 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 square footage available for sale in the metro area has fallen consecutively for the past six months for retail properties. The square footage available for sale for retail properties in the metro area decreased 7.3% year-over-year and 11.8% compared to the end of the fourth quarter of 2011. The square footage available in the metro area for the month of March represents a three-year low. The previous low was reached last month. The current square footage available for sale reflects a 7.3% fall in the metro area over the past year. The drop in both the supply of properties and the average time on market could be a sign that prices are going to move upwards. The current market conditions are not favorable for buyers or sellers as prices are falling and sellers still do not seem willing to put more properties on the market due to the poor conditions.

For the past nine months, available units for sale has declined month-over-month for multifamily properties. The number of units available for sale for multifamily properties in the metro area decreased 24.7% year-over-year and 15.8% compared to the end of the fourth quarter of 2011. A new three-year low in available units was reached during the month of March. Previously, last month set the low mark. Multifamily properties in the metro area have seen a 24.7% drop in units for sale over the past year. The drop in supply and the shorter time on market has caused prices to go up, and may continue to do so. The current market conditions are not favorable for buyers or sellers as prices are falling and sellers still do not seem willing to put more properties on the market due to the poor conditions.

Days on market for multifamily properties in the Memphis Metro Area fell 26% from last year, to 199 days. Over the same period, days on market in Tennessee overall have fallen by 19.4%. Compared with April 2009, when time on market was its shortest, it has now gotten 57.2% longer. The time on the market of multifamily properties has now increased 38.3% for the past six months.

The year-over-year rise in the time that office properties last on the market is less at the metro level than at the state level. Office properties now last 249 days on the market, up 7.1% from the same month last year. From the lowest point, which was set in April 2009, time on market has risen 46.5%. Days on market for office properties has been on an upward climb over the past seven months.

Industrial properties in the Memphis Metro Area stay on the market for 272 days, which is 4.1% shorter than last year. During the same period, days on market in Tennessee have dropped 12.1%. Compared with November 2009, when time on market was its shortest, it has climbed 59.4%. The time that industrial properties stay on the market in the metro area has been increasing every month for the past five months.

The time on market for retail properties in the Memphis Metro Area is down 34.6% from last year, to 135 days. At the state level, time on market has fallen by 32.5% during the same time period. Compared with March 2010, when days on market was at its highest, they've now fallen 43.5%. The time on the market of retail properties has been on the rise over the past four months, increasing 15.7%.

Lease rates for office properties reached a three-year high in June 2006 at $16.47 per square foot. The current median asking lease rate is 0.1% lower. On the other hand, the lowest asking lease rate in the past three years was seen in August 2009 at $15.30. The asking lease rate for office space in the metro area has risen to $15.90 from $15.87 three years ago, a rise of 0.1 percent.

For industrial properties in the metro area, the average asking lease rate was $4.61 per square foot for the month. This is down 10.9% from the previous year, and down 0.2% from the end of the fourth quarter of 2011. Lease rates for industrial properties reached a three-year high in July 2009 at $6.22 per square foot. The current median asking lease rate is 4.5% lower. The lowest asking lease rate in the past three years was $4.26 set in May 2006.

Asking rates for retail properties hit a three-year peak in April 2006 at $14.86 per square foot. In comparison, the current median asking price is down by 15.8%. The lowest asking lease rate in the past three years was $12.25 set last month.

The number of office properties for lease has seen a month-over-month rise of 0.2% over two consecutive months but has yet to offset the decline of 5.8% over the past year.

This is the fifth month of an increase in industrial properties for lease in the metro area, representing a 5.1% increase. This was insufficient to offset the 3.7% decrease of the past year.

The number of retail properties for lease in the metro area has been rising three months in a row month-over-month, moving up 1% in that time. However, this has yet to offset the drop of 9.9% over the past year.

Demand on LoopNet for office properties spiked in the Memphis Metro Area market, rising 32.2% since December 2011, 3.4 percentage points more than the 28.8% increase in the national average. Demand for office properties also increased by 37.6% over the past year. The yearly change ranks the Memphis Metro Area eleventh out of the top 48 metros.

While interest in industrial properties listed on LoopNet has risen 13.3% over the past year, that change ranks forty-seventh out of the top 48 metros. Demand on LoopNet for industrial properties spiked in the Memphis Metro Area market, rising 24.9% since December 2011, 0.9 percentage points less than the 25.8% increase in the national average.

Demand on LoopNet for retail properties spiked in the Memphis Metro Area market, rising 15.7% since December 2011, 9.6 percentage points less than the 25.3% increase in the national average. Demand for retail properties also increased by 32.7% over the past year. The yearly change ranks the Memphis Metro Area ninth out of the top 48 metros.

The square footage available for office properties have been on the rise month-over-month for four consecutive months. Square footage for office properties has risen 3.2% versus the end of last quarter. For the year, square footage is up 8%. Office properties in the metro area have seen a 8% rise in the average available square footage over the past year.

There has been a five month upward trend in available square footage for industrial properties, representing a 13.4% upward trend, but it was not enough to offset the 7% decline seen in the past year. The available square footage for industrial properties has risen 13.2% versus last quarter. But for the year, square footage is down 7%.

The month-over-month rise in available square footage for retail properties is now in its third month, representing a 3.1% increase, but is insufficient to offset the decline of 10.4% over the past year. The available square footage for retail properties has risen 2.8% versus last quarter. But for the year, square footage is down 10.4%.

The time on market for office properties in the Memphis Metro Area is 219 days, down by 46.2% from last year. At the state level, time on market has fallen by 34.9% during the same time period. From October 2009, when the time on market was at its highest, it has fallen 53.1%. Days on market for office properties has been on an upward climb over the past two months.

Industrial properties in the Memphis Metro Area stay on the market for 209 days, which is 40.6% shorter than last year. Overall in Tennessee the time on market has dropped by 20.2% during the same time period. This month, time on market for these properties hit a new low point.

Retail properties in the Memphis 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. Retail properties now last 297 days on the market, up 55.2% from last year. In comparison, these buildings last 247 days at the state level, 14.1% less than last year. From the lowest point, which was set in April 2011, time on market has risen 94.7%.