RCA Insights

US Volume Drops in July, Retail Tumbles, RCA Report Shows

By on August 25th, 2017

Investment volume in the U.S. dropped last month to the lowest tally for a July since 2011, the latest US Capital Trends shows. All sectors except industrial declined compared with July 2016.

Deal activity fell 28% year-over-year, the sharpest monthly decline since January. Even as volume dropped pricing was steady, with cap rates flat for most sectors.

1708 USCT overview main-01

The consumer transition from bricks to clicks was evident again in commercial real estate investment. Retail sector volume tumbled 54% year-over-year and for the year to date it is 21% lower. Industrial, boosted by a large logistics portfolio deal, was the star sector in July, gaining 10% compared with a year ago.

If you are a current RCA subscriber log into your account to download the July 2017 Big Picture report and reports for the individual property types.

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.