Transaction Flow in US Property Markets Down 16% But Pricing Firm

Colliers International’s outstanding research team has analyzed Real Capital Market trends for the first half of 2016 vs prior year’s and found:

  • Investment sale transactions nationwide were down 16% from the first half of 2015, with much of the decline in portfolio purchases.
  • Investment capital remains robust with volume up 15% from the 2014 level, which was the high watermark until last year.
  • Composition of transactions has changed significantly from the first half of 2015 to midway in 2016, with only multi-family (apartment) sales up (+9.7%) and the other major categories all down, led by hotels (-55%), Industrial (-31%), Retail (-20%), and Office (-12%).
  • Despite the slowdown, pricing remains firm, even rising, led by office product (+13.6%), then industrial (+7.6%) then hotels (+4.5%), while apartments (+2.7%)and shopping centers (-0.5%) lagged.  My own editorial – less volume, but higher prices; hmmm, makes one wonder about the quality of the product being traded or external influences such as a bottoming of interest rates…
  • Through 2017, the Colliers mothership expects prices to continue rising and investor interest to remain strong as transaction volumes regain traction as a reflection of the strength and stability of the U.S. economy and remarkably low interest rates, with a warning:  keep an eye on risks and avoid chasing yields as the growth cycle continues.

If you would like the entire article, please email me at scott.rogers at colliers.com.

About scottrogersjax

30 years' in commercial real estate investment sales, banking, mortgage banking, and valuation. Trained and schooled in Atlanta, and now heading the Investment Sales Team in the Colliers Jacksonville office.

Posted on September 13, 2016, in Market Reports/Statistics, Transactions and tagged , , . Bookmark the permalink. Leave a comment.

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