The Dane County commercial real estate market is changing with the times, too

As in the residential market, inventory is high in the commercial market, too. Dane County commercial inventory (excluding lease only listings) currently stands at 68 months.

Meanwhile commercial sales have been slowing in recent months, while commercial listings have been expiring more frequently. Sales were down by more than 17% over the last 12 months compared to the previous 12 month period. Expireds were up by 5%.

The trends toward fewer sales and more expired listings are clearer when we look at what has happened over the past several years. Only $20.4 million in commercial real estate sold in 2007 after $51.6 million sold in 2005. A total of $128.3 million in commercial real estate expired in 2007, up from $73.5 million in 2005.

In other words for every $1 million in commercial real estate that sells, another $6 million in real estate expires. This is tough news for some, but for others the imbalance of supply of demand could one day lead to a great deal that helps to grow a business.

For our full report on the commercial real estate market, check out the economic trends page at DaneCountyMarket.com. And stay tuned for our upcoming reports on the "lease only" commercial market as well as the residential income real estate market.