Archive for February, 2008
For the last few years we’ve seen auction companies go from single asset auction events to multi-property events that contain sometimes tens if not hundreds of properties.
Mostly the residential auction houses enjoyed the larger multi-property events but now we’re starting to notice that commercial auction events are getting larger. Is this a sign of a turn in the commercial real estate markets or just spillover from the carnage over at residential? The answer is that it’s probably a little of both.
Most notably, Tranzon is conducting a 14 commercial property auction event at the end of the month that will take a few days to complete. The auction is “lender ordered” so typically that means great deals for buyers. The auctions are being performed on site which allows buyers to really kick the tires just prior to bidding, a practice that seems to be beneficial for everyone involved.
Other auction firms are following suit by offering commercial properties in bulk to investors who have been waiting for their opportunity to swoop and scoop. Most properties being offered however, seem to be outside of major markets that enjoyed a nice run up in valuation these last few years.
We expect this trend of commercial grade properties being offered at public auction to continue upward for the next several quarters.