Sale Volume Down, But Foreign Interest Strong For East Coast CRE

Harbert: “Both 2014 and 2015 were record years for property sales, partially due to pent-up demand from the recession. As a result of this, and the uncertainty surrounding tax legislation in the US, sellers have been somewhat hesitant to put their properties on the market in 2017.”

NEW YORK—While there has been a fairly dramatic decrease in sales volume this year due to a disconnect between buyers and sellers, there are pockets of strength and the outlook is positive for next year, Colliers International‘s eastern region president Joe Harbert tells GlobeSt.com. We sat down with Harbert to chat about the current state of the eastern region, how landlords are attracting top tenants and the leasing outlook for 2018.

GlobeSt.com: How would you define the current state of the eastern region of the CRE market?

Harbert: What we are seeing in 2017 is a decrease in sales volume that’s been fairly dramatic. In the last month of the year, people are usually scrambling to close deals before year end, but fewer deals are being closed now, and the sales volume is about 50% down in certain pockets. Even though there are low interest rates and the financing market is favorable, there is not a lot of product for sale.

Both 2014 and 2015 were record years for the sale of property, partially due to pent-up demand from the recession. Now, sellers are hesitant to put their properties on the market. Buyers are thinking we’re deep into this recovery, which is creating a disconnect with sellers: the buyers are not there at the prices the sellers are expecting like they were back in 2014/2015.