Small CRE properties show recovery signs

Many smaller properties have made recovery strides.

A report from Boxwood Means explained that property management companies and others have been purchasing smaller commercial real estate buildings this year.

The total sales volume for properties worth less than $5 million rose 41 percent during May to $4 billion when compared to the same month in 2011, Bloomberg reported, citing the company. The report examined 122 metropolitan statistical areas and 88 of these experienced a rose in sales volume.

During the first five months of the year, the volume totaled more than $20 billion, which was the highest figure since 2008, the report explained.

"It's making the market more liquid, more transparent and if we get rid of this distress we'll have a firmer footing," Randy Fuchs, principal and co-founder of Boxwood Means, told the news source.

Much of the reason commercial property managers of these types of properties struggled during the past few years was because of the ongoing economic issues throughout the country, the report added. With most properties located in either shopping centers, restaurants or offices, they required the success of local neighborhoods to thrive.

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