— Recent research by First National Realty Partners (FNRP) finds that internet searches for “commercial properties for sale” have increased 153% from their lowest point following the declaration of the COVID-19 pandemic.
Before the pandemic, from 2019 to 2020, the national total monthly search volume for the term “commercial properties for sale” averaged ~46,000 searches per month. In March 2020, at the beginning of the pandemic, search traffic fell to ~30,000 searches per month. In early 2021, the total monthly search volume for the same term reached ~76,000 searches per month.
Using data accumulated through Google Trends, FNRP found that internet searches related to the keywords “commercial property” and “commercial property for sale” have greatly increased over the past three years despite COVID-19 related disruptions.
“The scale of change in these data sets highlights a surprising contradiction,” says FNRP Chief Investment Officer Jared Feldman. “The prevailing thought was that the commercial properties that house these service-based tenants like restaurants and hotels would suffer. This data shows that, despite COVID-19 related headwinds, investors are looking to come back into the commercial real estate space in a big way.
Additionally, the research shows that the following states saw increases that greatly exceed the national average:
In Ohio, search traffic saw an increase of 112%. From 2019-2020, search traffic averaged ~1,600 searches per month. In December 2020, search interest reached a peak of ~3,400 searches per month, before settling to an average of ~2,900 searches per month in early 2021.
In Arizona, search traffic for the term “commercial properties for sale” saw an 81% increase. From 2019-2020, search traffic averaged ~700 searches per month. Immediately following the declaration of the pandemic, search interest fell to ~450 searches per month. Search interest slowly recovered throughout 2020 and greatly accelerated following the approval of a vaccine in December 20202, peaking at ~1,300 searches per month.
In Texas, search traffic saw a gradual increase of 73% over the course of the pandemic. From 2019-2020, search traffic averaged ~3,100 searches per month. In early 2021, search interest reached ~5,400 searches per month.
In Kansas, the average monthly search volume for the term “commercial properties for sale” grew by 120%. From 2019-2020, search traffic averaged ~260 searches per month. While search volume grew slowly through 2020, interest spiked following the vaccine approval and continued to grow into 2021 reaching average monthly search traffic of ~600 searches per month.
In Washington D.C., search traffic saw an increase of 78%. From 2019-2020, search traffic averaged ~90 searches per month. While this search traffic held steady through the pandemic, in December 2020, search interest sharply grew to ~160 searches per month.
About First Nation Realty Partners
First National Realty Partners is one of the country’s leading private equity commercial real estate investment firms. With an intentional focus on finding world-class, multi-tenanted assets well below intrinsic value, we seek to create superior long-term, risk-adjusted returns for our investors while creating strong economic assets for the communities we invest in.
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