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

Senior Vice President
jcostello@rcanalytics.com

Jim Costello has worked in the CRE space on issues of urban economics since 1990, including a 20-year stint at Torto Wheaton Research. Jim expanded the reach of the Torto Wheaton Research team developing forecasts of global market fundamentals. He also developed approaches to pair the forecast results with frameworks to answer investor questions on asset values and relative investment opportunities.

In the aftermath of the Global Financial Crisis, Jim provided advice to the Treasury Department and helped educate these professionals on commercial real estate performance. Jim is a member of the Commercial Board of Governors of the Mortgage Bankers Administration, where he helps policy makers understand the commercial real estate industry.

Jim is expanding the capabilities of the Real Capital Analytics team on issues of real estate market dynamics. Jim has a master’s degree in economics and is a member of the Counselors of Real Estate.