Local Market Holding Strong

According to the University of South Alabama Mitchell College of Business Center for Real Estate and Economic Development’s September 2020 Mobile Bay Economic Snapshot, some commercial real estate categories have done better in 2020 versus 2019. While 2019 was a strong year for multifamily sales, this category has also performed well this year. Surprisingly, 2020 retail sales values and transactions are up. Total 2020 industrial sales are on par with 2019’s figures, with only slightly fewer transactions, and 2020 healthcare property sales values were buoyed largely by the $39.5 million dollar sale of the new Veterans Administration facility in Tillman’s Corner. Office property sales values are off by 32.8%, but the number of transactions only declined by 17.4% in 2020 versus 2019. The recreational/recreational-vehicle category has both total values and units sold in the green for 2020. Hotel sales are also in the green for 2020, with one property selling in both 2019 and 2020. Though total restaurant sales values are less in 2020, the number of transactions is up 18.2%.