Investment Off to Slow Start in 2017

Following a strong $133.8 billion in transaction volume in the fourth quarter of 2016, investment activity tapered off in the first quarter of this year, hitting $93.6 billion as of March 31, according to Real Capital Analytics data.

Note: Data current through March 31, 2017. Excludes development sites. Based on independent reports of properties and portfolios $2.5 million and greater. Data believed to be accurate but not guaranteed.
Note: Data current through March 31, 2017. Excludes development sites. Based on independent reports of properties and portfolios $2.5 million and greater. Data believed to be accurate but not guaranteed. Source: © Real Capital Analytics,  Inc. 2017.

U.S. investment in commercial real estate had a slower start in 2017, with all regions seeing a decline in volume for the first quarter, according to Real Capital Analytics data. While total volume in the fourth quarter of 2016 was $133.8 billion, transaction volume only hit $93.6 billion in the first quarter. The West saw the biggest dip, from $38.9 billion in volume for the fourth quarter of 2016 to $25.7 billion as of the first quarter. The slowdown in transaction volume is likely the result of investor uncertainty surrounding potential reforms under the new administration, but as policy decisions become clearer, investment will likely pick back up.