Investment Sales Nationally—Where To?
The Commercial Observer reports: Real Capital Analytics reported last week that national multifamily and commercial real estate sales spiked in June, rising to $9.7 billion in the month. This was the highest volume of significant commercial property sales since September 2008. The latest closings pushed sales for the first half of 2010 to $36.2 billion, up 67 percent from the cyclical low during the same period one year earlier.
The increase in activity-over the year, from the first to the second quarter and over the second quarter itself-suggests that investors remain largely undeterred by downward revisions to the economic outlook and shots across stability's bow from Europe's debt markets. The current tally of properties in contract suggests that prevailing levels of activity will be sustained into the third quarter.
The rise in sales coincides with tentative improvements in national pricing trends as well. The Moody's/REAL Commercial Property Price Index, based on repeat sales data from Real Capital, shows a 3.6 percent increase in its all-property-types index for May. Like headline measures of transaction volume, prices have come off their lows, rising by 8.6 percent since their nadir in October 2009. Across the sectors and for all transactions, cap rates were consistently lower at midyear as compared to late-2009 highs. In the office sector, in particular, average cap rates for closed sales in June were just below 8 percent, almost 100 basis points lower than in January.
View the full article on The Commercial Observer: Investment Sales Nationally—Where To?
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Posted by: Nina Turner