Jul
26

Property Sales Take Hits, Keep Punching

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RCA_Logo_highresThe topline figure for the first half of 2016 shows a 16% year-over-year decline in the volume of significant US commercial property sales, Real Capital Analytics says in its latest US Capital Trends report. Yet RCA cites “healthier trends” behind the headline.

“The commercial property investment market weathered three significant shocks” in the year’s first half, but has rebounded with “an upward trend in prices and ongoing investor interest,” according to the USCT report. The series of shocks began with turbulence in the financial markets early in the year, continued through an 18% Y-O-Y volume decline in property sales during the first quarter and concluded with the unexpected results of the UK referendum on leaving the European Union.

“The market has weathered these shocks with pricing largely intact,” according to RCA, which says the headline decline in H1 deal volume to $219.2 billion is “a little misleading.” In fact, RCA attributes much of the decline in deal activity to a limited number of portfolio and entity-level deals in the year’s first half, a trend that RCA says is in keeping with less investor demand for risk investments.

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