Office Sales Up 25 Percent Year-Over-Year Amid Signs Of Increasing Economic Activity And Job Growth

Transwestern Report Includes Global Economic Overview and Real Estate Outlook

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Sep 22, 2014, 12:59 ET

HOUSTON, Sept. 22, 2014 /PRNewswire/ -- The U.S. economy is demonstrating signs of increasing economic activity, while both Europe and Asia are showing signs of reaching stall speed, according to the September edition of "the BRIEFING," a report compiled by Transwestern. If job growth continues to stay strong, consumption and retail sales are expected to see some lift. The Federal Reserve's withdrawal of stimulus and ultimate rate increases will cause some drag to the economy, but growth should improve at a rate of 3.0 percent.

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The major commercial real estate property types saw year-over-year increases in sales in the second quarter, according to the Real Capital Analytics 2014 Mid-Year Review. Multifamily had a 39 percent increase year-over-year with $26 billion in sales. Office assets saw $27.2 billion in sales, a 25 percent year-over-year increase. Industrial sales totaled $11 billion, marking a 13 percent year-over-year increase. Retail properties posted slightly ahead of last year with $14.4 billion in sales.

While the U.S. is making strides, the Eurozone appears to have stalled again, with zero growth in the second quarter. World production is up 12 percent from pre-recession levels, but that's mainly due to Asian countries where production is up more than 60 percent.

Uncertainty in the Middle East and Ukraine, along with the Federal Reserve unwinding quantitative easing, has led to a sell-off of junk bonds as average yields rise from below 5.0 percent to 5.78 percent. In May, junk bond funds took in $2.61 billion, and then the withdrawals began. Withdrawals totaled $1.14 billion in June; $5.4 billion in July; $1.3 billion in the week ending August 1; and $7.1 billion in the week ending August 7.

More information can be found in Transwestern's September issue of "the BRIEFING," a monthly publication analyzing the national economy, capital markets and commercial real estate. Download the full report here: twurls.com/briefing0914

"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