By Real Capital Analytics on December 23rd, 2019
Chicago, Osaka, Dublin. Capital flows, lending trends, construction markets. Malls, suburban offices, student housing.
RCA Insights provided a rich vein of analysis for trends across the global commercial real estate market in 2019. Here’s our selection of 10 RCA Insights articles that grabbed our readers’ attention in the past year.
In RCA’s fourth most-read article of 2019, author Jim Costello investigated whether rent control in cities across the U.S. was affecting apartment cap rates.
Chinese investors have retreated from the global scene and South Korean investors have stepped into the limelight. In October, London-based author Tom Leahy described how Seoul-based investors really aren’t the new kids on the block, but have for several years been gaining a foothold in commercial property markets worldwide.
Opportunity zones were a buzz topic in 2018 and 2019 too. In June, the RCA team investigated what effects the legislation was having on development site sales — in the areas that were designated opportunity zones, those that were proposed but didn’t make the cut, and those that were never in the running. This was the most-read article of 2019.
A chart speaks a thousand words, is the mantra at RCA. In this September article we looked at Europe’s office sector to see which markets were gaining momentum on pricing and deal volume at midyear. The answer was … not many.
No sooner had we published this story in March than one of the world’s leading commercial real estate brokers announced it was acquiring a U.S. rival. We posted an update on the rankings shortly after. Watch out for the broker rankings for 2019 coming in March 2020.
In June, Jim Costello examined whether U.S. cap rates had changed much since Federal Reserve policy had switched direction. (“Spot the Difference”… with cap rates.)
Stories on cross-border capital flows always pique our readers’ interest. In this piece, Singapore-based author Benjamin Chow looked at Osaka’s lure for global investors.
RCA’s August article on cross-border investors turning net sellers — by the slimmest of margins — for the first half of the year was an “uh-oh” moment for some readers. Still, Jim Costello wrote, it’s a warning sign, not a calamity. (By the end of the third quarter the net selling margin had widened out to the tune of $18 billion.)
Prices for U.S. industrial assets took off in 2019. Price growth for the in-demand sector was no slouch in 2018, but was mostly second to apartment sector price increases. In 2019, industrial pulled ahead and our results for November showed that industrial prices grew at the fastest rate since before the Global Financial Crisis. In this midyear update, we charted which property sector’s prices were accelerating, and which were easing back.
Measuring liquidity in commercial real estate markets is tricky. Deal volume just doesn’t cut it. In 2017 we launched the RCA Capital Liquidity Scores to solve this problem for investors. In this report describing the midyear 2019 scores, we showed how Central London — once the most liquid market in Europe — had slipped to the #5 position. Globally, Manhattan ruled the roost once again.
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