September 18, 2019
The latest research by Real Capital Analytics (RCA) shows some global cities are experiencing an acceleration in price gains. Markets such as San Francisco, Boston and Los Angeles ran counter to the global trend of decelerating or falling commercial real estate prices at midyear 2019, reports RCA. Price growth in all three metros accelerated from a year earlier, with San Francisco posting price annual gains of nearly 15%.
Amsterdam and Seoul were in the top five global cities for price growth at midyear, though both are experiencing deceleration in price gains compared to a year earlier.
Looking at cross-border numbers, RCA found investors turned net sellers of U.S. commercial real estate in the first half of this year for the first time since 2012. RCA’s US Cross-Border Investment Compendium showed investors made direct acquisitions totaling $21.3 billion in H1 2019 and divested $21.4 billion.
Cross-border direct acquisition volume dropped 37% in Q2 2019 from a year ago. The pullback was not a function of capital from one region halting purchases: buyers from each major region of the world were active, writes RCA’s Jim Costello. He points out most, however, simply purchased less than last year.
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