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

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
(Getty/Illustration by The Real Deal)
TRD Pro: 7% mortgage rates are not so bad
TRD Pro: 7% mortgage rates are not so bad
(Getty; Illustration by The Real Deal)
Agents: Life is good under 7%
Agents: Life is good under 7%
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
arrow_forward_ios

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

Loading...