West Sees Largest Investment Decline in 1Q
All regions of the U.S. saw a decline in commercial real estate investment for the first quarter of the year, according to Real Capital Analytics data, with the West and Southwest seeing the greatest decreases in transaction volume.
Delinquencies on the Rise in June
The total number of delinquencies has continued to climb since the beginning of the year, hitting $15.2 billion as of June 2017, according to S&P Global data.
Direct Private Real Estate Returns
In 2016, direct private real estate returned 7.4 percent but across major metropolitan markets there was considerable variation due to differences in local market conditions.
Development
The retail sector peaked in May 2014 at 52.5 million square feet, but experienced a 27 percent decline in construction in the following year.
Industrial Demand
The new orders for all manufacturing industries decreased on a month-over-month basis by 9.5 percent or nearly $48 billion.
Employment Picture
For unemployment, the most significant decrease was in the Farming, Fishing and Forestry occupations with 28.3 percent. The overall unemployment rate dropped 8.9 percent year-over-year.
National Vacancies
Forecasts show that net absorption is expected to rise in the first quarter of 2018 only in the West region (33.5 percent) and is expected to decrease in the rest of the regions.
CMBS Delinquencies
Retail properties had the largest decline, at $639 million, while office decreased by $518 million.
REIT Returns
Among the SNL U.S. REIT sector indexes, the manufactured homes sector recorded the highest one-year total return at 23.5 percent, beating the broader U.S. Equity REIT index by 18.4 percentage points.
Top 5 Retail Space and Office Building Sales
PropertyShark compiled the top 5 sales in office and retail for May 2017 in New York City.
You must be logged in to post a comment.