Investment volume levels uncertain as year finishes

Commercial investment volumes could drop.

The level of investment could trend down during December, which would be unlike most years. This is due to the end of the year being a traditional gain in commercial real estate transactions, according to Dan Fasulo, managing director of Real Capital Analytics.

Transactions typically pick up in September and increase throughout the year. However, Fasulo explained to Commercial Property Executive that sales may not strengthen as much as initially hoped. Many sales could be prevented if investors do not bid highly enough by the end of the year.

"As much as I would have hoped that uncertainty would have gone away with the presidential election being over, I don't think it has gone away, which is a shame," Fasulo explained to the news source. "We know who the president is going to be but it doesn’t seem to have translated into investment."

Commercial sales for December can not be predicted accurately at this point, which could help calm some worried about the situation, the news source added. However, the fiscal cliff could cut down the level of activity in the market, overall.

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