RCA Insights

May 2017 US Capital Trends: Deal Volume Falling, Not Sky

By on June 23rd, 2017

Investment activity fell 12% year-over-year in May and for the year to date is down 15% year-over-year, the new edition of US Capital Trends shows. Deal volume is falling but the sky is not. Except for the retail sector, prices are still flat-to-increasing.

There were bright spots in May, with the suburban office sector up 3% YOY and the hotel and industrial sectors registering growth of more than 20% YOY. The story for the apartment sector is not so bright. Activity in this sector, which was the largest and most liquid investment market for most of 2015 and 2016, declined in May and was lower than activity in the office sector. For the year to date, transaction volume for apartments is down 25% YOY and for office is down 5% YOY.

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Jim Costello

Jim Costello

Executive Director, MSCI Research

Jim is chief economist on the MSCI real estate research team and is based in New York. He previously led the U.S. research team at Real Capital Analytics, which MSCI acquired in 2021, and spent two decades at Torto Wheaton Research, working in urban economics. He is the lead author of the US Capital Trends publication and a frequent speaker at commercial real estate conferences. Jim holds a master’s degree in economics and is a member of the Commercial Board of Governors of the Mortgage Bankers Association.