During 2018 commercial property sales increased 25% setting a new high of 137 vs 110 in 2017. The previous record of 120 sales occurred in 2003 with the low of 36 in 2008.
The $2,233,069 Average Sale Price (ASP) was 79% higher than the $1,244,531 last year and 108% above $1,072,163 in 2016. The highest ASP for the last 16 years was $2.7M in 2005 and the lowest $584M occurred in 2000. This was primarily due to three large sales in Key West.
Dollar Value of Sales rose 123% to a new high of $305,930,460, due to the 25% increase in sales and 79% increase in ASP. It was $136,898,392 in 2017 and $81.2 2016. The previous highest was $289M in 2005 with the lowest, $31M, in 2009.
Sale Price-to-Original List Price (SP/OLP) rose 3% to 86.75% from 84.36% a year earlier and 86.35% in 2016. (The SP/OLP compares the sale price of the property to the list price of the property at the time it first came on the market versus the list price at the time the contract was written and provides a measure of the mismatch between many sellers’ initial list price and the market price acceptable to buyers.)
The Sale Price-to-Final List Price (SP/FLP) increased 4% to 92.54% from 89.38% last year and 89.47% in 2016. (The SP/FLP compares the sale price of the property to the list price of the property at the time the contract was written instead of the time the property was first listed and reflects the average percentage of the final listed price that buyers are paying for properties that have sold.)
The margin between the SP/OLP (86.75%) and SP/FLP (92.54%) is 5.8%, which indicates, on average, a seller can anticipate price reductions during the term of the listing of nearly 6% from their Original List Price to the Final List Price prior to receiving a buyer’s offer and the sales price on average will be about 7% less than the final list price.
Days On the Market (DOM) decreased 31% to 214 from 311 days last year and is down 15% from the 251 days in 2016. (This is a measure of the number of days between the date the property was listed and the date the sale closed.)
Listings on Market: The number of listings increased 14% to 175 from 153 in 2017 and is up 16% from 251 in 2016.
Average List Price increased 18% to $1,740,779 from $1,471,922 in 2017, which also was down 24% from $2,275,133 in 2016.
Months of Inventory (MOI) declined 12% to 15 months from 17 months last year and 24 months in 2016. (MOI provides a measure of the rate of sales versus the supply of properties and is also known as the “absorption rate.”)
Pending sales, are properties under contract that have various contingencies to complete prior to closing, usually within the next 30 to 60 days, provide an indication of the number of additional properties that will close in that time frame, increased by 33% to 16 from 12 in 2017 and 2016.
Florida Keys Commercial Sales History 2000 through 2018
Here, we detail commercial market activity for each of the four major submarket areas during 2018 compared to each year since 2000 thereby providing a continuing historical perspective of commercial sales.
As a reminder, the Upper Keys consists of properties from Lower Matecumbe to Key Largo. The Middle Keys includes properties from the Seven Mile Bridge to Long Key. Lower Keys properties range from Bay Point to Big Pine. Key West properties run from Old Town to Shark Key.
Sales: The number of commercial sales peaked in 2003 for Key West (72), 2005 for the Middle (29) and Upper Keys (24) and 2006 for the Lower Keys (15).
Sales bottomed out for the Lower Keys (1) and Key West (19) in 2008, and 2009 for the Upper Keys (7) and Middle Keys (4).
In 2018: Key West had 70 sales, the second highest on record. The Upper Keys set a new high of 31 besting the 24 in 2005. The Middle Keys had its highest number since 2005 with 21. The Lower Keys tied the record high of 15 sales in 2006. Keys-wide commercial sales also set a record with 137 vs 120 in 2003. The Key West market remains the most active market with a historic average dating from 2000 of 52% of all commercial sales, followed by the Upper Keys with 23%, then 15% for the Middle Keys and 10% for the Lower Keys.
Average Sales Price: The Key West market had the highest ASP, $3.046M, nearly tying the 2005 record of $3.099M. The Upper Keys averaged $1.6M followed by the Middle Keys at $1.4M and the Lower Keys at $654K. Keys-wide, the ASP increased 79% to $2.2M due to the 177% increase in the Key West ASP, the result of four sales amounting to $109M.
11100 Overseas Highway, Marathon, FL 33050