August 13, 2015
The commercial real estate industry is surging again, but the formidable turnaround is sparking concern that we might be headed for another bubble.
Second-quarter valuations of office buildings in Los Angeles, as well as other global cities, are at highs not seen since 2009. Meanwhile, record highs were hit during the second quarter for offices in Chicago, Hong Kong, London and Osaka.
Transaction volume is also through the roof. The prices of deals done during the first half of the year were at $225.1 billion, up 36 percent from the prior year and on track to hit pre-recession levels.