Throughout the last year, especially in the last quarter, there were several instances of overall growth in Gainesville’s commercial real estate scene.

All Property Types

Last quarter, across all property types, there was a total of 148% 12 month in Sales Volume Growth over 99 total sales for a total of $445 million dollars in sales volume. 

Multi-Family 

Last quarter, multifamily saw a high level of 12 month sales volume growth as well at 252% over 11 transactions, for an average transaction price of $146,138 per unit. “There were a couple of large assets in multi-family that traded at the end of the quarter that seem to represent a growing trend of bundling properties together. Piccadilly and Point West” said Aaron Bosshardt, broker and owner of Bosshardt Realty. “I just toured a 5 property package a week ago that probably sells for 90 million. I think with 582 units for example you can attract a lot more capital then might be willing to buy a 100 unit apartment. Economies of scale and all that.”

Office

Gainesville office sales totaled growth of 27% with an average of $146 market sales price per square foot. Overall, last quarter, the office sector saw an overall sales volume of $56.5 million, up from just $4.8 million Q3 2021. 

Industrial

Industrial experienced the highest rate of growth with 269% in 12 month sales volume growth over 17 sales across 230k square footage total sold. There was an average transaction price per square foot of $130, an increase from the $54 seen last quarter. “Industrial development in Gainesville is non-existent,”‘ said Aaron Bosshardt. “I just told potential sellers buyers in our market that they don’t have a choice. Here is a warehouse, this is the price.”

Retail

Retail, again also demonstrated positive growth last quarter with a 12 month sales volume growth of 80.5% across 33 total sales. This resulted in a sales volume of 79.8 million, a dramatic increase from the $25.5 million seen in Q3 2021.

Review

Overall, last year saw dramatic growth across all sectors of Gainesville commercial real state, especially within multifamily and industrial. Gainesville has done especially well since the slow closing of the pandemic and has rebounded in a positive direction. 

“I think as the stock market cools off we tend to get capital inflows into real estate. Also it’s an inflationary hedge.  We didn’t see especially high 1031 activity,” said Aaron Bosshardt. “I do think (the growth) it’s a trend that is going to continue as I think Retail properties have been dormant, but I see a surge coming with high inflation. And I don’t see any cooling in the white hot bubblicious Multi Family market.”