The number of for-sale properties are understandable--the creditmarket has forced more owners to put their properties on the market,either because they were unable to get refinancing or are in adistressed situation.
A shift in prices, as well as cap rates that have dropped by about 30to 50 basis points depending on whether it is a single or multitenant, is responsible for the change in demand, Snell tells GlobeSt.com. The change has been dramatic in some submarkets, he says. "We had several Walgreens inside DC and in Alexandria, VA that had been sitting on the market for about a year." These recently sold, he adds.
Kirk Knight and Snell recently listed a McDonald's ground lease inRockville, MD for $2.3 million--a rarity as McDonald's usually buys up the few net leased properties it doesn't already own, Snell says. Encompassing 3,657 square feet, the fast food outlet was developed in1998. Snell says he expects several full priced offers from both 1031Exchange and cash buyers.
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