According to global real estate consultant CBRE, commercial real estate investment volume in the U.S. totaled $118.8 billion in Q2 2018, an increase of 1.7% from Q2 2017.
There was minimal movement in cap rates in H1 2018, according to the latest CBRE Cap Rate Survey. The largest changes were industrial cap rates decreasing by 10 basis points (bps) year-over-year and retail power center cap rates increasing by 26 bps.
Pricing for all property types (except for retail) is at or near all-time highs, with mild deceleration in recent months. Increases in multifamily and industrial pricing continue to lead the national index.
Overall, commercial mortgage production in Q2 made up for the declines seen in Q1.
According to CBRE, Australia's commercial real estate remains an attractive asset class for offshore capital, with foreign investors accounting for 33% of all transaction activity in the first half of 2017.
CBRE is reporting that investors in Asia Pacific real estate in 2017 remain heavily focused on yield spreads when seeking assets as investment intentions, and are moving further away from capital appreciation strategies.