CRE Investment Up in April, But Deals Are Limited: Data

Originally published on June 16, 2021, by Michael Tucker for Mortgage Bankers Association.

U.S. commercial real estate investment increased in April, but not all pandemic-related problems are in the rearview mirror, reported Real Capital Analytics, New York.

RCA Senior Vice President Jim Costello noted high double-digit annual growth rates in commercial property sales for the month.

Just one year ago, the CRE market stood on the precipice of the unknown, Costello said. “The global economy froze as workers were sent home; commercial property deal volume cratered as investors were hesitant and the mechanics of completing deals faced challenges,” he said.

Costello said that last year’s sudden volume contraction will make year-over-year comparisons difficult for the next few months. “Looking instead at the level of deal activity relative to trends before the pandemic can paint a clearer picture about the state of the market. We now see deal activity for April at about the same levels as that seen on average from 2015 to 2019,” he said.

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