Preliminary numbers from Real Capital Analytics reveal that commercial real estate transactions in 2010 grew 109 percent from the previous year and totaled $115 billion, according to National Real Estate Investor. The sales volume was especially high in December 2010, with its $21 billion doubling Novemberb s volume and tallying the highest trading volume for one month in about three years. Last yearb s fourth-quarter investment sales reached about $46 billion, an amount close to the recovery sales in 2004.
Sales in secondary markets are still expected to grow in 2011, as investors tire of competing for and driving prices up on b core assets in primary markets.b As NREI reports,
b As transaction volume increases in secondary markets in 2011, competition will begin to compress capitalization rates in those metros, according to [managing director of Real Capital Analytics Dan] Fasulo. And as investors show their willingness to buy assets in smaller markets, look for lenders to step up lending in those secondary and tertiary cities as well.b
With an array of investors looking to buy commercial real estate in 2011—REITs, pension funds, foreign and private investors and corporations—sales volume is predicted to continue its surge this year.
Tags: commercial real esstate, CRE blog, CRE transactions, CRE trends, investment sales, sales volume
