RCA Insights

US 2020 Deal Volume Tumbles; Drop Moderates in Q4

By on January 20th, 2021

Activity in the world’s largest commercial real estate market tumbled in 2020 due to the global health crisis though there were signs of improvement into the year-end. U.S. sales volume fell 32% versus 2019 and for the fourth quarter dropped a more modest 19%, the latest edition of US Capital Trends shows.

US Capital Trends year-over-year change in commercial real estate volume

The industrial sector overtook the office sector as the second most active real estate market in 2020, as the pandemic focused investor attention on the warehouses needed for online retailing, and raised questions about future demand for office space with the increase in home-working. The apartment market was the biggest.

Dallas was the largest center for commercial real estate sales in 2020, boosted by apartment and industrial property deals. Sales in the Texas market still fell by a quarter versus 2019. Sales activity in Manhattan slumped by a half, and the market dropped to the #5 slot in the ranks of the largest U.S. markets, its lowest position in RCA records.

Also in this report:

— The latest RCA intelligence on distress and potential distress across the property types

— The top markets across the U.S. and investment momentum

— The most active brokers, buyers, and sellers of 2020 and the top deals of the year

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Clients of Real Capital Analytics <<click here>> to download the latest US Capital Trends from the RCA website. To learn more about how RCA’s reports, data and tools can inform your investment decisions, contact us.

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