Report: Raleigh real estate market ranks among top value for investors

The Triangle Business Journal just gave us something else to cheer about. Here’s the story on Raleigh’s favorable investment market.

The Raleigh-Durham area ranks as one of the best value propositions for investors of commercial real estate in the U.S., according to the latest Situs RERC Value vs. Price Index, especially for office, industrial and apartment properties.

The Situs report for the first quarter ranks Raleigh at No. 1 for industrial property value among the 26 secondary markets surveyed in the report.

The Triangle also ranked at No. 2 for office property value, No. 3 for apartment property value and No. 11 for retail property value. The region bested Charlotte, Atlanta, Austin and Nashville in every single category except retail.

So far in 2016, investors of commercial real estate properties in the Triangle have bought and sold nearly $1.36 billion in commercial properties in the region.

Earlier Situs reports did not break down the list by primary, secondary or tertiary market as the first quarter report did, but the Raleigh market had previously ranked at No. 9 out of all 48 markets in the third quarter report.

The report is designed to measure the current fundamentals of a metro area compared to the current pricing of real estate properties based on recent sales transaction data and cap rates. Higher ranking metros have relatively low prices and strong fundamentals related to job creation, transaction volume and population growth. The lower ranking metros have higher pricing levels and poorer fundamentals related to job growth and transaction volume.