Gilroy, CA Market TrendsBETA

Asking prices for multifamily properties have gone up from the end of last quarter, rising 4% to $168,669 per unit. For the year, asking prices are up 5.3%. Asking prices for multifamily properties hit a three-year peak in March 2008 at $225,918 per unit. The current median asking price is 15.1% lower. The lowest asking price over the past three years was $159,231 in June 2011.

Asking prices for office properties rose to $245.22 per square foot, a 2.7% increase compared with the end of the prior quarter. For the year, asking prices have still declined 5.6%. In September 2007, the asking prices for office properties were at their highest in the past three years at $333.58 per square foot. The current median asking price is 16.3% lower. On the other hand, the lowest asking price in the past three years was seen in December 2011 at $238.77.

Asking prices for industrial properties rose to $140.84 per square foot, a 0.2% increase compared with the end of the last quarter. Asking prices have risen 1.5% on the year. In February 2008, the asking prices for industrial properties were at their highest in the past three years at $201.59 per square foot. In comparison, the current median asking price is down by 14.8%. On the other hand, the lowest asking price in the past three years was seen in June 2011 at $137.74.

Asking prices for retail properties have risen 2.5% versus last quarter to $258.69 per square foot. For the year, asking prices have fallen 8.3% on the year. Asking prices for retail properties reached a three-year high in September 2009 at $310.61 per square foot. In comparison, the median asking price is now 4.9% lower. The lowest asking price in the past three years was $227.80 set in September 2006.

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 October and the lows come around April. Over the past year sale prices have fallen 2% to $186,990 per unit. The highest median sale price over the past three years was $210,966, which was set in April 2009. In comparison, the current median sale price is down by 11.4%. However, the current price is 3.4% higher than the September 2011 figure, which was the three-year low. This month marks the third straight month of growing median sale price for the metro multifamily properties. Back in January 2012, the median sale price was $182,511.

Currently, the median sale price per square foot for office properties in the metro area is in two-month decline, falling 1.4% in that time. Earlier this year, the median sale price rose 14.1% during the six-month period ending in February. Sale prices per square foot for office properties have seen an increase to $208.68, up 4.5% compared with the last quarter. During the past year, though, sale prices have dropped by 0.6%. Over the past three years, the median sale price reached its highest of $274.95 in December 2009. In comparison, the median sale price is now 24.1% lower. However, the current price is 12.5% above the three-year-low of $185.49 set in September 2011.

Sale prices per square foot for industrial properties have increased by 5.7%, and currently sit at $127.83. Sale prices have seen an increase of 10.7% for the previous year. Over the past three years, the median sale price was at its highest in April 2009 at $129.15. In comparison, the median sale price is now 1% lower. However, the current price is 36% higher than the three-year-low of $94.01, which was set in July 2009. This month is the sixth consecutive month of increasing median sale price for the metro area's industrial properties. When the streak began in October 2011, the median sale price was $117.23.

Median sale price per square foot for retail properties in the metro area is currently in a four month downward trend, but the rate of decline has slowed in the last month. The average sale price per square foot for retail properties has decreased by 12.6% compared to the end of the last quarter to $253.98. However, the average sale price has risen 1.8% over last 12 months. The highest median sale price over the past three years, which was $350.31, was set in June 2009. In comparison, the current median sale price is down by 27.5%. However, the current price is 14.2% above the lowest price of the past three years, which was set in November 2010.

For seven consecutive months, the number of multifamily properties available has seen a month-over-month decline, 24.4% overall. The number of available multifamily properties has reached a new three-year low in the San Jose Metro Area this month. Previously, multifamily properties available was at its lowest last month. There has been a 28.5% drop in available multifamily properties over the past year in the San Jose Metro Area.

For the past two months, the number of of office properties for sale has been on the rise month-over-month, increasing 1.6% over that period, but it was not enough to offset the 8.1% decline seen in the past year.

There has been a eight month drop in the number of industrial properties available month-over-month in the metro area, representing a 14.5% downward movement. The number of industrial properties available has fallen in March, reflecting a new three-year low in the San Jose Metro Area. The previous low was set last month. The number of industrial properties available in the San Jose Metro Area has fallen 16.5% over the past year.

The number of retail properties for sale in the metro area has been rising two months in a row month-over-month, moving up 0.5% in that time. However, this has yet to offset the drop of 4.3% over the past year.

San Jose Metro Area ranks fifth out of the top 48 metros in terms of interest growth for multifamily properties listed on LoopNet over the past year. Demand has increased 43.4% during that time. Demand on LoopNet for multifamily properties spiked in the San Jose Metro Area market, rising 34.8% since December 2011, 17.3 percentage points more than the 17.5% increase in the national average.

While interest in office properties listed on LoopNet has risen 5.3% over the past year, that change ranks forty-fifth out of the top 48 metros. Demand on LoopNet for office properties spiked in the San Jose Metro Area market, rising 34.6% since December 2011, 12.9 percentage points more than the 21.8% increase in the national average.

Interest in industrial properties listed on LoopNet has fallen 9.6% over the past year. The change ranks forty-eighth out of the top 48 metros. Interest in industrial properties listed on LoopNet in the San Jose Metro Area has increased this quarter, rising 13.4% since December 2011, nine percentage points less than the 22.4% increase in the national average.

While interest in retail properties listed on LoopNet has risen 0.3% over the past year, that change ranks forty-sixth out of the top 48 metros. Demand on LoopNet for retail properties spiked in the San Jose Metro Area market, rising 22.7% since December 2011, three percentage points more than the 19.6% increase in the national average.

There has been a four month upward trend in available square footage for office properties, representing a 2.3% upward trend, but it was not enough to offset the 31.8% decline seen in the past year. The available square footage for office properties has risen 2.3% versus last quarter. But for the year, square footage is down 31.8%. 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.

The square footage available for sale in the metro area is in a six month downward trend month-over-month for industrial properties. The square footage available for sale for industrial properties in the metro area decreased 14.6% year-over-year and 10.8% compared to the end of the fourth quarter of 2011. The square footage available in the metro area hit a new three-year low this month. The previous low was reached last month. The square footage available for sale for industrial properties in the metro area has fallen 14.6% 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. A decrease in supply also appears to be making the market more favorable for sellers, which could be why prices are going up.

For the past four months, available square footage for sale has declined month-over-month for retail properties. The square footage available for sale for retail properties in the metro area decreased 11.4% year-over-year and 10.9% compared to the end of the fourth quarter of 2011. Retail properties saw a new three-year low in square footage available for the month of March. Previously, last month set the low mark. The square footage available for sale for retail properties in the metro area represents a 11.4% decline over the past year. 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.

This is the second consecutive month that units available 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 24.3% year-over-year and 2.6% compared to the end of the fourth quarter of 2011. March showed a new three-year low of units available in the metro area. The previous low was reached in February 2010. Multifamily properties in the metro area have seen a 24.3% drop in units for sale over the past year. 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. 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.

Compared with a year earlier, multifamily properties in the San Jose Metro Area are staying on the market longer, and the gap is greater at the metro level than at the state level. Multifamily properties now stay on the market an average of 161 days, up 14.4% from last year. In comparison, they last 123 days at the state level, down 3.7% from last year. Compared with August 2010, when the time on market was at its lowest, these properties are now on the market 57.3% longer.

The time on market for office properties in the San Jose Metro Area is down 6.4% from last year, to 145 days. In California overall, the time on market fell even more as a percentage, by 9.9%, to 190. Metro days on market is down 40.5% from its highest point in May 2010. The time on the market of office properties has now increased 20.6% for the past four months.

The time on market for industrial properties in the San Jose Metro Area is down 19.2% from last year, to 178 days. During the same period, days on market in California have dropped 14%. When put next to the highest days on market established in April 2010, it has now decreased 35.9%.

Retail properties in the San Jose 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 are now on the market for 186 days before turning over, which is 1.1% longer than last year. In comparison, these buildings last 147 days at the state level, 15.9% less than last year. Compared with October 2009, when time on market was its shortest, it has climbed 39%.

Lease rates for office properties have risen 2.5% versus the end of last quarter to $21.39 per square foot. For the year, asking lease rates have gone up 2.9%. Lease rates for office properties reached a three-year high in March 2008 at $25.31 per square foot. In comparison, the median asking price is now 0.5% lower. The lowest asking lease rate in the past three years was $20.77 set in October 2011.

Lease rates for industrial properties rose to $11.13 per square foot, a 2.8% increase compared with the end of the last quarter. Asking rates have risen 4.8% on the year. In February 2008, the asking lease rates for industrial properties were at their highest in the past three years at $13.23 per square foot. The current median asking lease rate is 13.7% lower. On the other hand, the lowest asking lease rate in the past three years was seen in December 2005 at $9.79.

For retail properties in the metro area, the average asking lease rate was $26.43 per square foot for the month. This shows a drop of 1.6% year-over-year, and a decline of 2.1% from the end of the fourth quarter of 2011. Asking rates for retail properties are the lowest they have been in three years. The previous three-year low was $26.60 in May 2011.

Available office spaces have fallen for the past 15 months month-over-month, a 18.7% decline. The number of office spaces available in the San Jose Metro Area for the month of March represents a three-year low. The previous low was set last month. In the past year, the San Jose Metro Area has seen a 17.2% decline in the number of available office spaces.

The number of industrial spaces available in the metro area has fallen three months in a row month-over-month, declining 1.1%. This month, the number of industrial spaces available in the San Jose Metro Area fell, hitting its lowest point in three years. The previous low was set in December 2011. The number of available industrial spaces has fallen by 18.5% over the last year in the San Jose Metro Area.

This is the third month of an increase in retail properties for lease in the metro area, representing a 0.6% increase. This was insufficient to offset the 2.9% decrease of the past year.

While interest in office properties listed on LoopNet has risen 15.9% over the past year, that change ranks forty-fourth out of the top 48 metros. Demand on LoopNet for office properties spiked in the San Jose Metro Area market, rising 30.6% since December 2011, 1.8 percentage points more than the 28.8% increase in the national average.

Demand on LoopNet for industrial properties spiked in the San Jose Metro Area market, rising 29.6% since December 2011, 3.7 percentage points more than the 25.8% increase in the national average. Demand for industrial properties also increased by 20.1% over the past year. The yearly change ranks the San Jose Metro Area thirty-eighth out of the top 48 metros.

Demand on LoopNet for retail properties spiked in the San Jose Metro Area market, rising 30.8% since December 2011, 5.4 percentage points more than the 25.3% increase in the national average. Demand for retail properties also increased by 19.2% over the past year. The yearly change ranks the San Jose Metro Area thirty-fifth out of the top 48 metros.

The square footage available in the metro area is in a five month downward trend month-over-month for office properties. The square footage available for office properties in the metro area decreased 23.7% year-over-year and 5.8% compared to the end of the fourth quarter of 2011. The square footage available for office properties in the metro area represents a 23.7% decline over the past year.

The square footage available in the metro area has fallen consecutively for the past 13 months for industrial properties. The square footage available for industrial properties in the metro area decreased 20.1% year-over-year and 6.6% 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. Previously, last month set the low mark. Industrial properties in the metro area have seen a 20.1% drop in square footage over the past year.

The month-over-month rise in available square footage for retail properties is now in its third month, representing a 3.8% increase, but is insufficient to offset the decline of 4.2% over the past year. The available square footage for retail properties has risen 3% versus last quarter. But for the year, square footage is down 4.2%.

The time on market for office properties in the San Jose Metro Area is 163 days, down by 29.4% from last year. Overall in California the time on market has dropped by 16.1% during the same time period. This month represents a new low for days on market in the metro area.

Over the past year, the time on market for industrial properties in the San Jose Metro Area has decreased 24.5% to 165 days. Overall in California the time on market has dropped even further as a percentage, by 25.5%, to 157 during the same time period. From September 2010, when the time on market was at its highest, it has fallen 36.1%.

Retail properties in the San Jose Metro Area are on the market longer compared with the same month last year, and this gap is greater than that at the state level. They are now on the market for 243 days before being sold, 7.5% longer than last year. For the state, these properties stay on the market for 229 days, down 14.5% from last year. Compared with April 2009, when time on market was its shortest, it has now gotten 40.6% longer. The time that retail properties stay on the market in the metro area has been increasing every month for the past three months.