How Prices Have Risen for Smaller Properties During the Pandemic
Due to the Pandemic and a surplus of buildings coming onto market, many real estate buyers have been investing in smaller properties. However, according to CoStar data, they have been paying more per square foot now than they did before the pandemic.
According to CoStar, investors are paying 7% to 9% more on average than they were at the same time last year. Industrial properties that are being invested in now are about 11% smaller in square footage but are averaging a 9.3% higher purchase price. Office properties are 30% less in dollar value and 35% smaller in square footage but are 8.4% more expensive. Multi-Family properties are 6% higher in dollar value. And finally in Retail, building size is 7.4% smaller than a year ago but actually 1.1% cheaper in value.