CRE deal volume slows, activity strong in select areas

Commercial real estate transaction volume lost steam earlier this year.

Total commercial real estate transaction volume slowed during the spring, and it has had a ripple effect throughout the industry, as only a few major markets have had positive activity, according to National Real Estate Investor.

Property management companies have experienced a significant drop in market gains, as total investment has tapered off and the pricing situation has not improved significantly, which may concern some.

"Investment sales have rebounded to 2004 and 2005 levels," Janice Stanton, senior managing director of capital markets for Cushman & Wakefield, told the news source. "Gateway cities led the recovery, but increasingly investors are looking to secondary markets for yield. The focus is either on durable cash flows in secondary markets, or secondary assets in primary markets."

However, Stanton explained that the market should improve as the year continues, and much of this has to do with foreign investment in the local markets, the news source reported. Even with this in mind, loans may be at a premium over the next several months beyond some of the strongest cities in the country. However, some smaller financial institutions have made strides to ensure lending will improve by some degree.

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