Colliers’ Chief Economist: Commercial Real Estate Sales Up Sharply
Ross Moore, Chief Economist for Colliers International has taken a peek at the third quarter data from Real Capital Analytics and come to the conlcusion that the CRE market is looking healthier than it has in a long time. As posted at Colliers SVP Coy Davidson’s blog:
Third quarter data from Real Capital Analytics confirms the investment sales market is bouncing back with considerable vigor. For all property types third quarter dollar volume registered $28.9 billion, a 35% increase from Q2 and more than double year-ago levels. Putting the latest numbers in context, investment volumes are now near 2002 levels when investment volume averaged $25.8 billion per quarter but well below 2007 when investment sales averaged $126.7 billion per quarter.
How sustainable is the rebound? Much will depend on the restoration of conduit financing, the longer term status of cap rates and the related price adjustments. As it stands, looking at volume, it appears like the market has left the bottom behind. That’s got to be worth celebrating.