US commercial real estate sales sink in February

Compared with last year’s $47.3B, just $25.1B worth of property changed hands

New York /
Mar.March 22, 2016 11:51 AM

UPDATED, March 22, 4:44 p.m.: U.S. commercial real estate sales took a dive last month in what may be the clearest sign that six years of growth is leveling off.

In February, $25.1 billion worth of commercial property was sold compared with $47.3 billion in February 2015, according to Real Capital Analytics.

Sales were $46.2 billion in January, the Wall Street Journal reported.

Since 2009, prices for apartment complexes, office buildings, stores and other commercial property climbed, but there are indications that they are now falling in certain sectors, according to the Journal.

“Clearly there has been a plateauing,” Jonathan Gray, global head of real estate for Blackstone Group, told the Journal.

Real estate research and advisory firm Green Street Advisors compiled an index of hotel values and found it was 10 percent lower in February than during the same time last year. The dip was partly because of reduced international travel last month.

Green Street’s broad valuation index was 8.7 percent higher in February than a year earlier. However, the previous year the index increased 11 percent, the Journal reported.

Still, Gray emphasized to the Journal that the market is healthier than before the crash and “it’s too early to call the end of the cycle.”

While volume sales nationwide dipped, in Manhattan, commercial real estate property activity is on the same level as early 2014, albeit down from last year.  In January and February 2015, there was a combined $11.2 billion in sales, compared with $6.7 billion during the same time period this year, according to Real Capital Analytics. [WSJ]Dusica Sue Malesevic

Correction: An earlier post misstated the amount of sales for January and February in millions, when it should be billions.


Related Articles

arrow_forward_ios
CBRE's Emma Giamartino and Bob Sulentic (CBRE, iStock)
Flush with cash, CBRE is ready to spend
Flush with cash, CBRE is ready to spend
GCP CEO Alan Yang (Getty, GCP)
GLP raises $2.3B for logistics property fund
GLP raises $2.3B for logistics property fund
Alphabet CEO Sundar Pichai and Twitter CEO Jack Dorsey (Getty)
Twitter, Google latest big companies to delay office returns
Twitter, Google latest big companies to delay office returns
Durst Organization CEO Douglas Durst (Getty)
Durst to fire unvaccinated corporate employees Sept. 6
Durst to fire unvaccinated corporate employees Sept. 6
Converting offices to lab spaces comes with challenges, as some spaces need specific ventilation and upgraded electrical facilities (Getty)
Conversions from offices to life science labs booming
Conversions from offices to life science labs booming
132 West 14th Street and KPG’s co-founders Rod Kritsberg and Gregory Kraut (Avison Young, KPG)
KPG signs long-term ground lease for 57K sf at 132 West 14th Street
KPG signs long-term ground lease for 57K sf at 132 West 14th Street
Paramount Group lost $16 million last quarter
Paramount Group posts $16M quarterly loss
Paramount Group posts $16M quarterly loss
Commercial property sales outpace pre-pandemic figures in Q2
Commercial property sales outpace pre-pandemic figures in Q2
Commercial property sales outpace pre-pandemic figures in Q2
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...