2016 Q2 CRE Market Survey: The Trends Are Your Friends

National Association of Realtors, Washington, ...

Who says you can’t look back? National Association of REALTORS® has released its second quarter 2016 Commercial Real Estate Market Survey, and the takeaways appear pretty good for the national commercial real estate market picture for 2Q.

In June 2016, a random sampling of over 62,000 NAR members with an interest in commercial real estate was asked for their input.  Nearly 1,000 responded with completed surveys, for a response rate of 1.6%.  A quick look at the resulting numbers:

  • Percentage of members completing a commercial lease transaction: 59%
  • Average transaction value: $1.4 million
  • Percentage of sales volume rise from one year ago: 8.4%
  • Percentage of REALTORS who closed a commercial sale 2Q16: 66%
  • Average cap rate nationally: 7.0%
  • Percentage of sales price increase year-over-year: 5.3%
  • Bump in leasing volume over previous quarter: 8.7% 

Number One Concern: Inventory

When asked for their number one concern,  responding NAR members answered that inventory trumped other concerns including bid/ask pricing gaps, financing availability, local and national economic conditions. Pricing and deal value averages are therefore expected to rise nationally as growing demand meets less-rapidly-growing supply.

NAR Members may download the entire report here (login required):

(Photo credit: Wikipedia)

One Comments

  • April Lavine

    September 2, 2016

    Quite good info given over here. Not only for the real state investors but the agents, buyers and sellers all can benefit from this post. Good Work!!

    Reply

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