Investment Volume Rebounds in Q2

Muoio: “The industry seems to have digested and even shrugged off a flurry of policy announcements.”

IRVINE, CA—Even as commercial property pricing has declined, investment activity expanded in the second quarter, Ten-X said Wednesday. The firm’s latest Commercial Real Estate Volume & Pricing Trends report shows that transaction volume jumped 15.6% from Q1 to $105 billion, according to Real Capital Analytics data, with the increase driven by growth in all sectors save retail. Although this represents a return to quarterly levels above the $100-billion mark, deal volume remains far below its cyclical peak, and is now 4.5% lower than a year ago.

“After hitting a post-election pause button, the industry seems to have digested and even shrugged off a flurry of policy announcements, concluding that many of the previously touted reforms will not be implemented,” says Peter Muoio, chief economist with Ten-X. “Instead, commercial real estate investors are assuming the US economy will continue to slowly and steadily expand in coming quarters. Even the expectation that the Federal Reserve will continue to raise interest rates has been accepted without significant upsetting of the apple cart.”