US office investment market remains well below 2019 levels

But some cities’ investment sales volume was down by just single-digit percentages in Q2

National Weekend Edition /
Sep.September 11, 2021 02:00 PM
US office investment market remains well below 2019 levels

New York, LA and Boston Skylines (iStock)

The U.S. office investment market has yet to recover from the pandemic, as sales volume remains well below 2019 levels.

The dollar volume of investment sales transactions across the top 30 markets totaled $28 billion in July. That was 45 percent below the July 2019 amount of $39.5 billion, according to Reonomy figures first reported by Commercial Observer.

Comparing volume in Q2 2021 and Q2 2019, some metro markets appear to be recovering — total volume in the second quarter of this year in New York, Los Angeles, and Boston is just 7 percent below totals in Q2 2019.

San Francisco and Washington, D.C., are still down dramatically compared to the second quarter of 2019. Investment sales volume in both cities was 28 percent lower than two years prior.

Seattle also recorded a 23 percent drop in sales volume between from Q2 2019.

But there was a bright spot. The $5.3 billion in Q2 transactions in New York was nearly triple the total of the first quarter.

And the wider commercial real estate market saw a relatively high level of activity in the second quarter. The $130.9 billion in commercial real estate investment sales was just 2.2 percent lower than two years prior, and up 169.5 percent from the pandemic-slowed second quarter of 2020.

Unsurprisingly, all of the top 30 markets tracked by Reonomy showed some level of recovery from pandemic lows.

[CO] — Dennis Lynch






    Related Articles

    arrow_forward_ios
    TA Realty sells Palm Beach Gardens office building for $17M
    TA Realty sells Palm Beach Gardens office building for $17M
    TA Realty sells Palm Beach Gardens office building for $17M
    Encore Capital’s Art Falcone and Vision Properties’ Fred Arena with 61 North University Drive in Plantation (Rescore, LoopNet)
    Art Falcone’s Encore Capital sells Plantation Walk office building for $58M
    Art Falcone’s Encore Capital sells Plantation Walk office building for $58M
    New York developers unveil plan for South Beach office project
    New York developers unveil plan for South Beach office project
    New York developers unveil plan for South Beach office project
    Millennium Management founder Israel Englander and the Sabadell Financial Center (Millennium Management, 1111 Brickell)
    Israel Englander’s Millennium Management inks 74K sf Brickell lease
    Israel Englander’s Millennium Management inks 74K sf Brickell lease
    Jim Moran with the site (Google Maps, Jim Moran Foundation)
    Jim Moran Foundation revs up HQ plan with $10M site acquisition
    Jim Moran Foundation revs up HQ plan with $10M site acquisition
    Forte Capital Management buys Hollywood medical offices for $11M
    Forte Capital Management buys Hollywood medical offices for $11M
    Forte Capital Management buys Hollywood medical offices for $11M
    Ytech buys historic Nolan House in Brickell for $6M
    Ytech buys historic Nolan House in Brickell for $6M
    Ytech buys historic Nolan House in Brickell for $6M
    East End Capital’s David Peretz (left) and Jonathan Yormak, with 100 North Biscayne Boulevard in Miami
    Inside the East End Capital-Australian investor feud over Miami’s 100 Biscayne tower
    Inside the East End Capital-Australian investor feud over Miami’s 100 Biscayne tower
    arrow_forward_ios

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

    Loading...