The year of 2012 was an overall positive environment for the commercial sales marketplace. Activity, pricing, sales volume, lending and just about any other relevant metric increased from the year before and greatly increased from the previous several years. The driving forces of the overall demand was the steady lack of available product throughout the year and the impending capital gains increase which pushed the sales activity to a sprint in the last few months of the year. Northern Queens saw a total of 123 commercial and investment property sales for a total dollar value of $288,000,000. These figures represent an approximate 25% increase from 2011 in both categories.
Flushing continues to be arguably the most desirable area in the Northern Queens region. Retail rents have finally settled in to their post-bubble pricing and the few vacant stores seemed to be all but filled up. Main Street retail is seeing rents from $50 to $100 depending on its proximity to the 41st Avenue corner hub. The surrounding retail strips such as Prince Street, Union Street, Northern Boulevard and College Point Boulevard are mostly in the $30 to $60 per SF range. There were only three retail properties sold for a total of $8,250,000 with an average price per SF of $330.
The most desirable asset not only in Flushing but the entire Queens marketplace was the multi-family product. Three-elevator apartment buildings sold for $35,493,240 which equated to $155 per SF, $148,793 per unit, 10.25x gross rent multiple and a 5% cap rate. The development market has also improved with the increase of construction loan availability for the more qualified developer. There were 4 development sales which averaged a sale price in the $120 per buildable square foot range. There was also 5 industrial sales and and 13 mixed-use building sales in Flushing.
2012 year in review: Jackson Heights, Corona, East Elmhurst real estate