United States Commercial Real Estate Sales Rose to 109%

January 14, 2011 / Elizabeth Buckley, Commercial Property Analyst

The huge sales in December 2010 helped increase United States transaction volume to $115 billion for 2010, in terms of commercial real estate sales from $54.6 billion two years ago (2009), or up by 109 percent. The increase in commercial real estate sales in the country is according to Real Capital Analytics’ preliminary results.

United States Commercial Real Estate Sales Rose to 109%

While December’s commercial real estate sales volume doubled the sales in November, the surge is an element of a continuing revitalization in investment sales, which push monthly volume further than the $10 billion spot last summer 2010.

According Real Capital Analytics’ managing director, Dan Fasulo, figures for the fourth-quarter 2010 sales of about $46 billion are similar to quarterly sales volume back in 2004.

Because, 2004 is considered as a health recovery year in terms of commercial real estate sales, added Fasulo.

In the real estate market recovery so far, commercial real estate sales is centered on core properties in primary markets.

Fasulo also said, a remarkable amount of disappointment from investors who aren’t winning transactions in the prime markets are showing, both on the debt and equity side.

He also added that the smart money right now is in the secondary markets, and while the transaction volume boosts in the secondary markets for 2011, competition will start to reduce capitalization rates in metros areas.

One year ago, Real Capital forecast that transaction volume and commercial real estate sales in the U.S. would achieve $100 million in 2010, and forecasts transaction activity in the market to begin doubling again in 2011.

December 2010’s commercial real estate sales volume of $21 billion was the highest total for a single month’s deal since December of 2007.

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