Buyers expand search for low-risk properties in top markets
Written by Beth Mattson-Teig [NREIonline.com December 9, 2010]
Office sales are expected to gain momentum in the coming year as investors move further afield to acquire quality properties in an increasingly competitive arena.
Investors made one point crystal clear in 2010. They have a voracious appetite for low-risk office properties in top markets, and they’re willing to pay a premium to get them. “I think we have all been surprised at how strong the demand has been for fully leased buildings,” says Charles Baughn, an executive vice president at Houston-based Hines.
That demand is evident in a sharp compression in cap rates. Cap rates for central business district office properties dropped about 100 basis points over the past six months to average 6.5% at the close of the third quarter. At the same time, cap rates for Class-A properties in “super core” markets of Washington, D.C. and New York have plunged below 4% in some cases, according to New York-based Real Capital Analytics.
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Hank Saurage obtained his Real Estate Sales License in 1984, followed shortly thereafter by his Real Estate Broker’s License in 1986. To further expand his business, he then obtained his Real Estate Broker’s License in Mississippi in 1997. In 1990, Hank earned the CCIM (Certified Commercial Investment Member) designation from the Certified Commercial Investment Member Institute. He is also a member of the Louisiana Commercial Data Base (LACDB), the National Association of REALTORS® (NAR), and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Growth Coalition; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).