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No Year-End CRE Transaction Surge, Says RCA
The mad dash to complete commercial real estate transactions at the end of the year failed to materialize. In fact, research by Real Capital Analytics (RCA) shows that although December 2017 was one the most active months of the year, it still fell short of the seasonal surge evident in each of the prior eight years.
RCA’s Jim Costello notes, typically U.S. commercial real estate activity hits a crescendo in the fourth quarter, with volume generally accounting for more than a third of total annual activity. In all of 2017, RCA’s preliminary data shows volume fell at a year-over-year pace similar to the first half of the year. That lackluster finish has analysts perplexed, whether it is “anything more than just a continuation of the existing trend.”
The industrial sector was the clear growth leader, recording its second most active year in history. Total deal volume for the industrial sector surpassed that of the retail sector by a wide margin. Suburban office and senior housing also posted gains for 2017.
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