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CRE Sales Volume Off by 27.6% Y-O-Y; Total Returns Gain from Q4
U.S. commercial real estate investment volume fell by 27.6% year-over-year to $92.4 billion in the first quarter, CBRE Research reported. However, the tally was on par with average Q1 volume from 2011 to 2020. Excluding entity-level and large portfolio transactions, Q1 investment volume fell by 20.4% year-over-year.
CBRE said private investors remained active in Q1, while REITs/public companies registered the largest Y-O-Y decline in transaction volume (-75%). Foreign investors targeted office and multifamily assets in Sun Belt markets such as Atlanta, Dallas and Phoenix.
Although the annualized total return of 2.6% in Q1 was half of what it was a year ago, CBRE said it gained a full percentage point from Q4 2020, mainly as asset appreciation started to recover. Across all sectors, industrial saw the largest Y-O-Y appreciation at 9.3%, while hotels registered the greatest depreciation at -20.7%.
- ◦Sale/Acquisition
