PROVIDENCE – The number of commercial real estate transactions in Rhode Island declined from 2016 to 2017, according to the Capstone Report released Tuesday by Capstone Properties.
Industrial transactions in Rhode Island declined 18.5 percent year over year, to 53 from 65 in 2017. The average industrial sale price, however, increased to $32.65 per square foot from $27.33 in 2016. A total of 2.5 million square feet of industrial space was sold in 2017, compared with 3 million square feet one year prior.
Capstone Properties said that the average price for industrial space from 5,000 to 15,000 square feet averaged $56 per square foot. Sales of industrial space from 15,000 to 30,000 square feet averaged $45 per square foot. Sales of industrial properties from 30,000 square feet to 60,000 square feet averaged $42 per square foot. All three prices represented declines from 2016.
The report also noted that the average rent per square foot for industrial space in Rhode Island was $4.
Retail transactions declined to 27 from 42 from 2016 to 2017, a 35.7 percent decline. At the same time the average per-square-foot sale price declined to $84.57 from $116.60, even as the total square footage sold increased 78.5 percent to 903,438 square feet.
Office transactions declined slightly to 52 from 57 in 2016. The average price per square foot for office space in Rhode Island declined 24.1 percent to $94.47 from $124.46 year over year. The square footage of office space sold in 2017 totaled 1.1 million, compared with 932,000 square feet sold in 2016.
Capstone reported that 1,191 units of apartments were sold in 2017, a 28 percent decline from 2016’s 1,654 sales. The average price per unit for an apartment increased 50.5 percent to $158,000 from $105,000. The report noted that the multifamily apartment building was a consistent performer, with prices increasing for smaller units, especially in East Side neighborhood in Providence.
Chris Bergenheim is the PBN web editor.
What does the writer believe are the implications of these seemingly alarming figures? Is it any kind of indication of overall small business or other economic activity?