Current Status: Sales activity rose though the second quarter of 2019, counterbalancing the dip in sales volume through the first three months of the year. Transaction volume through the first half of 2019 closely matched the volume over the same six-month period in 2018, according to Real Capital Analytics. Sales remained buoyant despite a healthy decline in entity-level sales and cross border investment relative to recent periods.
Outlook: Healthy property fundamentals across most property sectors combined with ample liquidity should fuel sales activity going forward.
YoY from Q2 2018
Current Status: Lending standards for commercial real estate loans among banks tightened through 2Q19. However, loan demand increased, partially in response to lower interest rates, following five consecutive quarters of flat/negative demand, according to the Fed’s July 2019 Senior Loan Officer Opinion Survey.
Outlook: Rising volatility and indications that the current economic growth cycle may be running out of steam should lead to more conservative underwriting among traditional lenders in coming periods.
This information is for our clients and investors only. Please note that the content of this report is for informational purposes only and should not be viewed as investment advice or an offer or solicitation. Any opinions are solely those of the Strategy and Research Team of CBRE Global Investors and are subject to change without notice, and may not be consistent with market trends or future events. This research is based on current public information that we consider reliable, but we do not represent it as accurate, updated or complete, and it should not be relied on as such.
Copyright © 2018, CBRE Global Investors, LLC. All rights reserved.