Commercial real estate sales plummeted in February of 2016 according to data released by Real Capital Analytics Inc. This potentially signals a peak to the six-year bull market for commercial real estate – which has surpassed pre-recession commercial real estate prices.
The firm cited a 47% drop in sales year-over-year. Specifically, February 2016 sales came in at only $25B vs last year’s $47.3B at the same time. Commercial real estate prices have also fallen for two straight months; this hasn’t happened in over six years. This shift in commercial real estate sales and prices have investors wondering if this was a one-time occurrence, or a glimpse into the future of what lies ahead for commercial real estate in the months to come.
But it’s not all bad news. The data also shows an increase in the rate of return, indicating values continue to go up.
What does it mean for the overall outlook? Where are we at in the commercial real estate cycle? Give us your thoughts in the comments section.
And for more information, read the full article from QuickLiquidity here: http://quickliquidity.com/blog/cre-sales-have-plummeted-heres-the-data.html