Commercial property

Sales of commercial properties increased by double digits in the first quarter

U.S. commercial property sales grew double-digit year-over-year in the first quarter, according to the latest edition of Real Capital Analytics’ US Capital Trends.

Deal flow across all asset classes rose 56% overall in the first quarter from the same period a year ago and was up 47% in March from year-ago totals, according to The report. Sales of individual assets rose 58% year-over-year in the first quarter, slightly outpacing the overall market, while entity-level transactions totaled $11.8 billion.

The flow of deals appears to be continuing despite mounting inflationary pressures and rising geopolitical tensions that have been on the lips of most industry insiders over the past few months.

But “closing a commercial real estate transaction is a process measured in months and weeks, so activity through the end of March likely reflects sentiment at the start of the year,” notes RCA’s Jim Costello. “The fallout from the recent uncertainty, if any, would likely be felt in the months ahead.”

Retail was a big winner in the first quarter, with transaction volume up 102% in Q1 2022 year-over-year and 70% year-over-year in March. Hotel transaction flow increased 71% year-over-year in the first quarter and 12% in March, while apartment transaction activity increased 64% in March year-on-year. the other and by 56% in the first quarter of 2022 compared to the first quarter of 2021. Sales activity of office properties increased by 59% compared to the previous year in the first quarter and the activity in March 2022 increased 32% from the previous year’s levels. Meanwhile, senior housing saw a 27% year-over-year drop in transaction volume in March and a 48% year-over-year drop. over a year in the first quarter.