June 26, 2017
Investment activity fell 12% year-over-year in May, and so far this year is down 15% year-over-year, according to the latest Real Capital Analytics US Capital Trends report. Deal volume is falling, but the sky is not, notes RCA real estate economist Jim Costello, who says, except for the retail sector, prices are still flat-to-increasing.
Overall deal volume has been down in 12 out of the past 16 months, since February 2016.
Costello points out that there were bright spots in May, with the suburban office sector up 3% year-over-year, and the hotel and industrial sectors both registering growth of more than 20% year-over-year.
The apartment sector, which was the largest and most liquid investment market for most of 2015 and 2016, declined in May and was lower than activity in the office sector. For the year-to-date, transaction volume for apartments was down 25% year-over-year, and for office was down 5% year-over-year.
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