Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-A record number of deals, up 14.5% from the first quarter, were seen in the commercial real estate world tracked by CCIM Institute, which also notes a 12% jump in dollar volume. Leading the way were the hotel and retail sectors, at least in terms of value of the deals.

The CCIM/Landauer Investment Trends Quarterly reports investors paid an average of $34.3 million for hotel properties, a jump of 54% over the first-quarter average. Meanwhile, retail properties commanded an average price of $13.4 million, a 30% jump over the first quarter. The retail sector also accounted for nearly 22% of the total transactions studied in the CCIM/Landauer survey, its best showing since 1996.

Meanwhile, commercial real estate capitalization rates have remained remarkably steady over time, according to CCIM/Landauer. The average cap rate has dropped from 10.4% in 1995 to 9.5% in the second quarter, which would translate into a 9% change.

“Real estate is not exempt from the economic cycle, by any means, but it has structural characteristics that moderate and delay cyclical effect,” says Cynthia Shelton, CCIM, president of CCIM Institute. “This gives investors a time-cushion to work with.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.