West Sees Largest Investment Decline in 1Q

All regions of the U.S. saw a decline in commercial real estate investment for the first quarter of the year, according to Real Capital Analytics data, with the West and Southwest seeing the greatest decreases in transaction volume.

Note: Data current through May 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.
Note: Data current through May 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.

Investors in U.S. commercial real estate were more cautious in the first quarter of 2017 than they were at the end of 2016, with transaction volume hitting $96.8 billion as of May 31, 2017, down from $134.1 billion in fourth-quarter 2016, according to Real Capital Analytics data. All regions of the U.S. saw a decline in investment, with the West and Southwest regions seeing the greatest decreases. Investment in the West declined from $39 billion in fourth-quarter 2016 to $26 billion in first-quarter 2017, while Southwest investment declined from $23.6 billion to $14.5 billion over the same period. Despite this slowdown, many industry participants believe investment will pick back up later on this year.