I-sales deal volume in the US is up, but sector still faces obstacles

Value of commercial property deals increased 6.7 percent year-over-year

TRD New York /
Jun.June 01, 2018 09:07 AM

Chelsea Market at 75 9th Ave and 1515 Broadway (Credit: Wikipedia)

Commercial property deals in the U.S. rose 6.7 percent in the first quarter compared to last year, but the industry is still facing several issues.

Higher interest rates and lower demand for office and retail real estate will be problems for the market going forward, according to a Ten-X Commercial study cited by Bloomberg. And while volume was up year-over-year in the first quarter at $107 billion, it still dropped by 14 percent compared to the fourth quarter of 2017.

Commercial property prices gained just 0.1 percent between March and April and dropped 1.4 percent from the previous year, the first time the Ten-X pricing metric dropped below its level from a year earlier.

The study also found that gains in the hotel and industrial sectors were not strong enough to offset declines in apartment, office and retail deals. Demand for warehouse space has still been high thanks to online shopping.

In New York City, dollar volume for closed investment sales for the year totaled $34.9 billion — down nearly 40 percent from $57.8 billion in 2016, Cushman & Wakefield data showed.  [Bloomberg]  – Eddie Small


Related Articles

arrow_forward_ios
“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think
Clockwise from bottom left: Robert Reffkin of Compass, John Gomes, Scott Rechler of RXR Realty, Rich Barton of Zillow, Gary Keller of Keller Williams and Don Peebles of The Peebles Corporation (Getty)

“America is in crisis:” Real estate leaders address George Floyd protests

“America is in crisis:” Real estate leaders address George Floyd protests
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
Photo illustration of Sen. Brian Kavanagh (Credit: Kavanagh by Albin Lohr-Jones/Pacific Press/LightRocket, Getty Images, iStock)

Lawmakers skip #CancelRent in favor of more modest bills

Lawmakers skip #CancelRent in favor of more modest bills
The process for challenging property assessments is so antiquated, officials won’t do Zoom meetings. (iStock)

“A recipe for disaster”: Fighting property taxes in a pandemic

“A recipe for disaster”: Fighting property taxes in a pandemic
Andrew Florance, CEO of CoStar (Photo by Jeffrey MacMillan for the Washington Post)

EXCLUSIVE: CoStar’s Andy Florance on buying Ten-X, the future of office buildings and why brokers don’t need discounts

EXCLUSIVE: CoStar’s Andy Florance on buying Ten-X, the future of office buildings and why brokers don’t need discounts
arrow_forward_ios

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

Loading...