Friday, August 24, 2012

Slumping Commercial Real Estate Sales Are Latest Flashing Red Non-Recovery Indicator via ZeroHedge

Real Capital Analytics (RCA) released their US commercial real estate transaction data for July last night. The only way to interpret the data is - ugly. After a dismal June (down 33% YoY), July did not see any bounce and in fact plunged 20% YoY with transactions totaling $14.6bn. As Barclays notes, the takeaway is generally negative, as the growth trend has weakened considerably since March ( which was +62% YoY). What is interesting to us is that with Treasury yields so low, the cap-rate 'spread' makes commercial real estate relatively attractive and yet no-one's buying.

Read more...Slumping Commercial Real Estate Sales Are Latest Flashing Red Non-Recovery Indicator | ZeroHedge

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