July 21, 2017
There’s a new investment market leader in the U.S. Preliminary numbers from RCA shows Los Angeles topped the list of largest CRE investment markets in the first half of 2017, as capital migrated from higher-priced markets.
Overall, the investment market numbers in the U.S. dropped 9% year-over-year, as the six major metro markets declined 20% year-over-year. Secondary and tertiary markets showed more favorable trends, with activity just 3% off the pace set a year earlier, notes RCA.
RCA’s CRE economist Jim Costello says, “Prices continue to tighten, despite the fall in deal volume. Retail and hotel cap rates are up from a year earlier, but far less than the change in the 10-year U.S. Treasury over the same time frame. Apartment cap rates are slightly down versus a year ago, even though deal activity for this sector has sunk.”
The top five sales volume markets for H1 2017 were Los Angeles, Manhattan, Dallas, Boston and Atlanta.
H1 2017 Sales Volume Top Five Markets Year-Over-Year Change
- Los Angeles down 11%
- Manhattan down 55%
- Dallas up 19%
- Boston unchanged
- Atlanta up 18%
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