By Champaign Williams
Strong investor interest in U.S. commercial property markets has led to a surprising rebound in transaction volume in the first half of the year, though Colliers International U.S. Chief Economist Andrew Nelson does not foresee this rebound carrying over into the new year.
Deal volume rose 4% in the first half of 2018 compared to last year, a modest increase that reflects a resurgence in investment activity after deal volume dropped off in seven of the eight previous quarters, according to Colliers International’s 2018 Capital Flows report.
“Although transaction volumes were modestly higher this year, the trend since 2015 has been a gradual decline in transaction volumes, and I see that trend continuing the rest of this year into next year despite the small pickup in the first half of 2018,” Nelson said. “We’re close to the actual top of the market. It’s always difficult to call the top of the market with any precision, but I think we’re very close to it.”
Bisnow spoke with Nelson about what is driving this moderate comeback, where investors are deploying their capital and how the economy will continue to shape the market moving into 2019.
