Second-quarter commercial real estate sales transaction volume was down about 50% from the comparable period last year, but flat sequentially, Green Street reported. Year-to-date transaction volumes are now in-line with longer-term averages, although well below last year’s pace.
“Broader macro conditions are not supportive of CRE transactions right now,” said Danile Ismail, co-head of strategic research at Green Street. “Credit availability has tightened, and that combined with higher interest costs, a persistently wide bid-ask spread, and the lack of forced sellers is limiting deal flow.”
He continued, “The decline remains fairly broad-based, as no markets appear to have avoided material slowdown in transaction activity. The office sector has shown the most pronounced drops – particularly in markets like Houston, New York and Atlanta – relative to estimated market value, while apartments and strip centers stand out with steep year-over-year volume declines. Despite cyclical headwinds, REIT M&A has picked up in Q3 and major deals in office and industrial provide North Stars for values and some glimmers of hope.”
The post Green Street: “Broader Macro Conditions” Weigh on CRE Investment Sales appeared first on Connect CRE.
Second-quarter commercial real estate sales transaction volume was down about 50% from the comparable period last year, but flat sequentially, Green Street reported. Year-to-date transaction volumes are now in-line with longer-term averages, although well below last year’s pace. “Broader macro conditions are not supportive of CRE transactions right now,” said Danile Ismail, co-head of strategic …
The post Green Street: “Broader Macro Conditions” Weigh on CRE Investment Sales appeared first on Connect CRE.
Robert Khodadadian has long had a simple philosophy about selling real estate. There are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller.
robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate