The softening demand for commercial real estate on Cape Cod, MA continued in May 2008 as the number of completed transactions fell to its lowest level for the month of May since 1999.
In May 2008 a total of 23 commercial property transactions were recorded at the Barnstable County Registry of Deeds. The recent recordings reflect a modest yet continued decline from the 27 transactions recorded in April 2008. In the past ten years, the highest level in the month of May was achieved in 2004 with 48 transactions. The number of Cape Cod, MA commercial real estate transfers posted in the month of May has steadily declined in each subsequent year.
A total of 76 transactions involving commercial real estate assets located throughout Barnstable County, MA were recorded through May 2008. Year-to-date, commercial property transactions through May 2008 are down 22.45% compared to the same five month period in 2007.
Commercial property dollar volume in May 2008 was just over $19.8 million. This figure included $9.121 million from the sale-leaseback of six Rockland Trust Co. branch banks located on Cape Cod, MA. (See related story.) In May 2007, the total commercial property dollar transaction volume was substantially higher at $118,945,750. This figure, however, includes $106.0 million from three Cape Cod, MA properties sold as part of a $500 million portfolio sale completed by the Flatley Company of Braintree, MA. Among the ten New England investment properties conveyed, local assets included Southwind Plaza and the Borders Bookstore building in Hyannis, MA and The Falmouth Mall in Falmouth, MA. The joint venture acquisition was completed by the Wilder Cos. of Boston and O’Connor Capital Partners in New York.
In May 2008, transaction activity was favorable in the restaurant and small mixed-use classes. Activity for commercial condominiums of all types, a bell weather sector on Cape Cod, continued to reflect a steady drop off in demand.
Note: Recorded sales include “arms-length transactions” and generally exclude conveyances among related parties, convenience sales, acquisitions by governmental agencies, and certain foreclosure related transactions.