US Commercial Property Sales Post YOY Growth on Strong Office, Hotel Sales
Globe St reports: Citing data aggregated and analyzed in Real Capital Analytics’ (RCA) latest US Capital Trends reports, First Quarter in Review edition released on April 21, 2011, GlobeSt.com columnist Paul Bubny recently reviewed commercial real estate trends in the US. Commercial property sales totaled $3.1 billion in the first quarter, up by 69% year-over-year. The increase was led by significant gains for CBD office and full-service hotel sales during the quarter. Another positive trend continued into the first quarter: properties falling into distress amounted to just $14.9 billion, the lowest quarterly total since the third quarter of 2008.
Major markets disproportionately contributed to the first quarter’s rise in sales, with large year-over-year volume gains in San Francisco and Washington, DC benefiting core office sales among other property types. Other less visible markets posted slight declines, including Baltimore, MD and Tampa, FL.
The large bump in national sales paradoxically coincided with a decline in repeat sales pricing, as tracked by the Moody’s/REAL Commercial Property Price Index, which is fueled by repeat sales data from RCA’s database. The latest release by the index indicated that pricing fell by 3.3% between January and February 2011, and is now just 0.8% above its last relative low set in August 2010. Sales out of distress continued to weigh heavily on the index in February.
View the full article on Globe St: US Commercial Property Sales Post YOY Growth on Strong Office, Hotel Sales
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Posted by: Nina Turner