Jun
13

Report: U.S. Investment Sales Down 69% in First Quarter

By
June 12, 2008

By Matt Hudgins – National Real Estate Investor

An ongoing stalemate between buyers and sellers helped to slow commercial property transactions to a crawl in the first quarter, but researchers suggest activity will accelerate near or just after the end of 2008. Commercial real estate transaction volume plummeted in the first three months of the year to $39.2 billion, a 69% decrease from the year-ago level, according to a report by Jones Lang LaSalle.

“Overall transaction volumes have reverted back to roughly 2004 levels,” researchers state in Jones Lang LaSalle’s Spring 2008 U.S. Investment Market Report. “It will take at least the remainder of 2008 and into early 2009 for some semblance of normalcy to return to the capital markets.”

Global sales volume is down as well, but the decline has been more modest than in the United States. In the first quarter, transactions worldwide totaled $154 billion, down 46% from the $283 billion of property that changed hands in the first quarter of 2007, according to Real Capital Analytics. Preliminary data suggests the drop-off in deal volume will be more severe in the second quarter as troubles worsen in the U.S. and Europe, while Asian markets begin to suffer from the credit crunch and the global repricing of risk.

ARTICLE SHORTENED DUE TO LENGTH….

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http://nreionline.com/news/u_s_investment_sales_down_0612/
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