RCA Insights

US Volume Dips, Manhattan Loses Top Spot, RCA Report Shows

By on July 28th, 2017

US deal activity inched lower in the second quarter of 2017 as buyer and seller discord on pricing hampered growth, the new edition of US Capital Trends shows. Investor caution in higher-priced markets hurt Manhattan, and Los Angeles claimed its position as the largest commercial real estate investment market.

Deal volume dipped 5% in Q2’17 versus the same period a year ago, the third consecutive quarterly decline. For the first half of 2017, activity was down 8% versus a year earlier, though some sectors fared better than others. Both prices and deal volume for hotels, suburban office and industrial assets in the Non-Major Metros climbed in the first half of the year. The retail sector in Non-Major Metros is suffering both on the price and volume fronts.

1707 USCT Overview bubbles-01

If you are a current RCA subscriber log into your account to download the Q2’17 Big Picture report and reports for the individual property types. The top markets, deals and players at midyear are ranked.

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.