Strong 4th Quarter Elevated U.S. Commercial Real Estate Sales Volume in 2010 to $112.5 Billion — More Than Double That Seen in 2009
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The fourth quarter of 2010 saw a significant increase in commercial real estate sales to $112.5 billion up impressively from $54 billion and change in 2009 (but still a small fraction of the almost $558 billion in 2007.
While I had been forecasting a $120 to $140 billion 2011 commercial transaction market, I now increase that to $180 billion—nearly identical to 2008.
This really good article from the MBA focusing on Real Capital Analytics’ data also notes that cap rates declined 100 basis points to 7.4 percent. I believe the decline is not a compression in cap rates, but rather a premium being paid for the BEST properties in the market that in normal times rarely come to market but in distressed times become the first sought-after purchases by investors.
For anyone impacted by commercial real estate sales – THIS IS A MUST READ
Cap Rates Fall on Higher U.S. CRE Transaction Volume- mortgagebrokers.org