RCA Insights

Turning Point in US Deal Volume on the Horizon?

By on May 13th, 2016

U.S. deal volume fell again in April, but there are indications that a turning point in the volume slide may be coming. Preliminary figures suggest a 35% YOY decline on sales of $21.7 billion. While the scale of the drop is likely to be trimmed somewhat, it does continue the trend of double-digit monthly declines.

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Of note for April, however, is the fact that some high quality assets transacted in the month; earlier in 2016 there were indications that owners were holding such assets back from the market. Recent transactions of high quality assets suggest that the pricing disconnect between buyers and sellers may be fading.

Next week Real Capital Analytics publishes its US Capital Trends reports. We review deal volume and pricing in April and examine investment trends among buyer groups so far in 2016.

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.