Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Wednesday, 24 January 2018

Property Sales Volume Drops Again in 2017 by 7 Percent

The volume of commercial properties that changed hands last year declined by 7 percent to $463.9 billion, according to Real Capital Analytics. That marks the second year in a row in which sales volumes have declined. In 2016, they were down 11 percent from the previous year. Fewer entity-level transactions and big-ticket Manhattan office property sales took place last year.

Commercial Real Estate Direct Staff Report

The volume of commercial properties that changed hands last year declined by 7 percent to $463.9 billion, according to Real Capital Analytics. That marks the second year in a row in which sales volumes have declined. In 2016, they were down 11 percent from the previous year.

The New York research firm blamed the weaker sales volume on the growing gap in pricing expectations between sellers and buyers. The latter don't expect capitalization rates, which determine pricing levels and are reliant on interest rates, to decline, while the former remain stubborn with their pricing expectations.

Every major property sector, with the exception of industrial, saw a decline in sales volume last year. Sales of hotel properties plunged by a sector-leading 24 percent to $27.5 billion; retail properties fell by 18 percent to $63.4 billion, and office properties dropped by 8 percent to $131.9 billion.

Investors plowed into the industrial sector, pushing volume up by 20 percent to $72.2 billion.

Meanwhile, the prices investors pay for properties have actually increased, by 7.1 percent, according to Real Capital's Commercial Property Price Index, or CPPI.

Geographically, investors pursued more deals in Los Angeles than in New York - marking the first time in 15 years...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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