Wed. Sep 20th, 2023
    New Supplement Tracks Sales Volume in the Private-Capital Real Estate Segment

    Real Estate Alert has recently released a special supplement, leveraging Green Street’s data and analytics, that provides comprehensive analysis of private-capital transactions in the U.S. commercial real estate market. The supplement focuses on transactions valued between $5 million and $25 million and offers unparalleled intelligence on sales volume by sector and market.

    According to the supplement, deals for properties in this price range experienced a 29% decline, amounting to approximately $38.9 billion, from January to June. This represents the largest drop since Real Estate Alert started tracking smaller sales four years ago. However, it is still significantly better than the $25 million and higher space, which saw a 61% decrease in sales during the first half of the year.

    CBRE emerged as the leader in the Midyear Overall Broker Rankings for the private-capital segment, as well as for sales priced at $25 million and above. Marcus & Millichap and JLL secured second and third place, respectively, in the smaller-sales race.

    The first six months of the year generated $96.8 billion in multifamily, industrial, office, hotel, retail, and niche property trades valued at $25 million or more, according to Green Street’s Sales Comps Database. While this figure is lower compared to the record-breaking $247 billion in the year-ago period, it is similar to the sales volume during the first six months of 2020, when the pandemic began.

    Real Estate Alert highlighted that the declines in the first half affected all asset classes and major brokerage firms to varying degrees. CBRE maintained its lead with a 23.9% market share in brokered trades in the institutional space. Eastdil Secured and JLL followed closely with 16.3% and 16.1% market shares, respectively.

    The financing of larger deals became more challenging due to volatile debt markets, resulting in increased costs and limited availability. Moving forward, the main obstacle remains the uncertainty surrounding the end of the Federal Reserve’s campaign to control inflation.

    Real Estate Alert has established itself as the trusted authority on U.S. institutional investment sales and is now emerging as the go-to source for insights on the sub-$25 million private-capital segment. With its extensive data, analysis, and insights, the publication aims to provide valuable information on the forces driving smaller investment sales.

    For more information and to obtain a copy of Real Estate Alert’s special supplement, visit their website.

    Sources:
    – Real Estate Alert
    – Green Street