Maximum investment in commercial real estate in 16 years

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US commercial real estate transactions rose 74% in July from a year earlier, according to a new report from Real capital analytics, which notes that the volume of transactions in the last month was also above the average rate set in July each year since 2005.

What’s happened: In the general commercial real estate environment, the residential sector attracted 35% of the total commercial real estate in a month. real estate investment

The apartment market also boosted prices in July, with apartment prices rising 13.5% year on year, the fastest pace since the housing boom of 2005-2006.

Office sector accounted for 26% of sales for the month. In the office sector, activity in the suburbs was the driving force as CBD real estate showed less attractiveness due to continued uncertainty about office use in urban markets. The suburban office price index jumped 11.7% in July from a year earlier, while the CBD office price index fell 4.6%.

Related link: Supreme Court Blocks Biden’s Extension of Eviction Moratorium

What else happened: Separately, delay in commercial mortgagesecured securities (CMBS) fell to new post-crisis low in August, according to data LLC “Trepp”.

The August reading of 2.54% was down eight basis points from July and 110 basis points from August 2020. The CMBS delinquency rate began to fall after June 2017, when it was 5.75%, and has been declining for 22 of the past 26 months.

Among the commercial real estate sectors, the residential sector had the lowest delinquency rate – 1.54%, and the retail sector – the highest – 4.07%.

Photo: John Taylor / Flickr Creative Commons.

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