RCA Insights

US Deal Activity Third-Highest on Record in 2018

By on January 25th, 2019

U.S. commercial property sales rose to the third-highest annual level on record in 2018, boosted by a swell of entity deals and record-high single asset sales, the latest edition of US Capital Trends shows. Volume climbed across all major commercial real estate sectors and industrial and apartment property sales hit highs.

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Despite these positive stories, there were signs of weakness into the final months of the years, especially in December. Turmoil in financial markets was a factor.

For the year in total, sale activity increased by 15% year-over-year. With another $8 billion in deals, 2018 activity would have overtaken previous peaks in 2015 and 2007.

This growth in volume is occurring in the face of record-high prices. The RCA CPPI for all property types climbed 6.2% in 2018 from 2017.

Real Capital Analytics (RCA) publishes US Capital Trends, the industry-leading report analyzing U.S. deal volume and pricing data, each month. To learn more about becoming an RCA client and receiving these publications, contact us.  

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.