CRE Transactions Have Crashed 70% Year Over Year | GlobeSt
Commercial Real Estate transactions have seen a downturn over the last year.
According to Green St Advisors, with only $37 billion in transactions, the U.S. is down 70% year over year (for properties over $5M). This is not merely a slow period in comparison to the past but also when compared to "the 10-year average transaction pace." It is not simply one asset class or one location in the US, but many.
Office transactions are down 79% year over year, and other assets face a similar trend, with multifamily down 83% and industrial down 69%. As limitations and costs of debt continue to rise, the scrutiny of asset value will recalibrate sellers’ expectations. Consequently, as the risk aligns with the true value of these properties, we can anticipate a natural increase in transaction volume.
Here at Cast, we understand the challenges posed by the current situation and have doubled down on providing exceptional service to our clients.
We believe that now, more than ever, our clients need our support and expertise to navigate these difficult times and seize opportunities in the commercial real estate industry.
According to Green St Advisors, with only $37 billion in transactions, the U.S. is down 70% year over year (for properties over $5M). This is not merely a slow period in comparison to the past but also when compared to "the 10-year average transaction pace." It is not simply one asset class or one location in the US, but many.
Office transactions are down 79% year over year, and other assets face a similar trend, with multifamily down 83% and industrial down 69%. As limitations and costs of debt continue to rise, the scrutiny of asset value will recalibrate sellers’ expectations. Consequently, as the risk aligns with the true value of these properties, we can anticipate a natural increase in transaction volume.
Here at Cast, we understand the challenges posed by the current situation and have doubled down on providing exceptional service to our clients.
We believe that now, more than ever, our clients need our support and expertise to navigate these difficult times and seize opportunities in the commercial real estate industry.
Original publication credit: Globest
Image credit: Times of San Diego
