Elevated new supply, rising interest rates, and the continued low-yield environment are weighing on investors. Yet an uptick in opportunities drove U.S. real estate transaction volumes to exceed expectations in the first half of 2018, increasing by 3.4 percent, to reach $194.9 billion.Commercial real estate demand fundamentals are healthy and the U.S. economic outlook continues to be favorable. The following themes are expected to shape investor behavior in the months ahead:
U.S. real estate transaction volume in H1 2018 marks 3.4 percent increase to reach $194.4 billion.
The composition of cross-border capital is evolving but overall participation holds steady.
Lending markets are increasingly competitive on the most sought-after opportunities.
Transaction activity remains high despite heightened deliveries and robust supply pipeline.
Investors’ definition of core assets continues to narrow, with heightened focus on best-in-class assets.
First half of 2018 tallies second strongest start in sector history, positioning for a record-setting year.
Underpinned by entity-level trades, retail transaction volumes mark lesser decline in first-half 2018 than in recent periods.
Hotel sector posts highest year-over-year growth in liquidity of all property types.
Net lease transaction volumes in line with broader sector activity; transaction volumes total $23.7 billion in first half.
View the complete H1 2018 U.S. Investment Outlook for more on the latest trends for each property sector.
President, Americas Capital Markets
Senior Director, Research