The second quarter 2014 edition of CCIM Institute’s Quarterly Market Trends was recently released, showcasing the results found from the survey taken by its members in May/June of this year.
According to CCIM members, the multifamily sector’s investment conditions were the most favorable in the second quarter of 2014, followed by industrial, retail, hospitality, and office. Current credit conditions are expected to improve, according to 60 percent of those who completed the survey, as opposed to the 35 percent who consider the current tightness to be the new normal.
Year-over-year deal flow saw the biggest gains in the industrial sector, 70 percent of CCIM respondents reported an increase in transactions in the second quarter of 2014. For 40 percent of CCIMs, prices were even, and higher for 52 percent of respondents. 62 percent of CCIM members also reported higher rents.
Compared with 63 percent in the second quarter of 2013, the quarterly showed that the retail sector saw mild improvement in the second quarter of this year, with retail deals increasing for 59 percent of CCIMs. Although prices were higher for 44 percent of respondents, and flat for 40 percent.
Another highlight of CCIMs Quarterly Market Trends, is that employment and job growth appear to be the most important drivers of the need for commercial real estate. Although the overall performance of the economy hasn’t been well, it’s expected that economic growth will pick up over the next several years, having a favorable impact on the demand for commercial space.