Posted by: encon commercial real estate services | October 11th, 2013
National CCIM Market Trends Report Shows Commercial Real Estate Gaining Momentum in 3Q13.
Deal flow among members of the CCIM Institute increased 57 percent year over year according to an August 2013 intelligence survey conducted by the National Association of RealtorsÂ® in conjunction with the CCIM Institute. Results of the survey and other commercial real estate market trends were published in CCIMâ€™s 3Q13 Quarterly Market Trends report. Headquartered in Chicago, the CCIM Institute confers the Certified Commercial Investment Member (CCIM) designation, commercial real estateâ€™s global standard for professional achievement.
The report, which features data collected from CCIM members across the country, shows property sale prices were higher or about the same as one year prior, and more than 65 percent of CCIM members said they received more serious inquiries from buyers than the same period last year. These strong indicators reveal that the economy is retaining positive momentum and commercial real estate fundamentals will continue to perform well through year-end and into 2014.
â€œThe current pace of moderate gains in employment and consumer spending should provide enough lift for absorption in the office, industrial and retail sectors to keep vacancy rates on a downward trend,â€ according George Ratiu, director of quantitative and commercial research for NAR. â€œDemand for rental housing will remain solid for the rest of the year, although competition from residential rental stock and new construction is likely to add pressure on rent growth.â€
With rising deals and investor confidence, more than 50 percent of CCIM members surveyed in each region (East, Midwest, South, and West) indicated that the economic climate is moderately positive. Property sectors that stood out from the pack based on CCIM membersâ€™ local and regional property market activity included office, industrial, and retail.
More specifically, CCIM members experienced:
Higher rental income (58 percent) and increase deal flow (61 percent) in the office market
Higher rents (55 percent) and higher property prices (44 percent) in the industrial market
An increase in retail deals (58 percent) and higher rental income (45 percent) in the retail market
Other notable property sector highlights included more than 75 percent of CCIMs reported higher asset prices in the hotel sector, and rental income in the apartment sector rose for 62 percent of CCIM members.
The complete report findings can be found at http://www.ccim.com/resources/qmt.
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