Commercial Real Estate Sales Up 13.5 Percent As Yield-Starved Investors Continue Chasing Returns

Transwestern Report Includes Global Economic Overview and Real Estate Outlook

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Aug 04, 2014, 01:06 ET

HOUSTON, Aug. 4, 2014 /PRNewswire/ -- The U.S. economy continues to trudge ahead, while yield-starved investors still flock to commercial real estate, according to the August edition of "the BRIEFING," a report compiled by Transwestern. Both debt and equity markets remain highly liquid and competitive as commercial real estate continues to offer attractive yield to income-oriented investors and opportunistic upside for those investors looking for higher return and higher risk investments. The first quarter saw a 13.5 percent increase in commercial real estate sales on assets valued at $10 million or higher, as compared to first quarter 2013, for a total of $74.1 billion in transactions.

Commercial real estate sales are up 13.5 percent as yield-starved investors continue chasing returns, according to the August edition of "the BRIEFING" report, compiled by Transwestern. (PRNewsFoto/Transwestern)

Most commercial product types reported higher sales year-over-year in May: retail sales increased 75 percent; office sales increased 17 percent; and multifamily sales increased 11 percent. Industrial sales, however, decreased by 10 percent year-over-year.

Unrest in Gaza, Ukraine and Syria is creating recent market volatility, but early second-quarter indicators show continued improvement in the U.S. economy. The first-quarter FDIC Bank Report noted several positive signs, including a decline in the number of banks on the problem list from 467 in fourth quarter 2013 to 411 with $216.1 billion in assets.

Across the Atlantic, the European Union has announced a trio of measures to combat rising unemployment and falling inflation: lowering the refinancing rate to 15 percent, increasing its lending program to $545 billion and ceasing the offsetting of bonds. There have even been hints that qualitative easing could be next.

More information can be found in Transwestern's August issue of "the BRIEFING," a monthly publication analyzing the national economy, capital markets and commercial real estate. Download the full report here: http://twurls.com/briefing0814

"The BRIEFING" is an aggregation by Tom McNearney, Transwestern's chief investment officer, of other articles and reports. McNearney leads Transwestern's capital market efforts for development and investment nationwide. McNearney also serves on the firm's investment committee and board of directors, and he directs the execution and expansion of the firm's principal investment activities across the country.

ABOUT TRANSWESTERN
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com and follow us on Twitter: @Transwestern.

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SOURCE Transwestern