Browse Tag: 2Q2016

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):

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