CCIM/Landauer Releases Second Quarter Figures.CHICAGO--(BUSINESS WIRE)--Sept. 9, 1997-- Nearly $5 Billion in Sales Sets Record in Real Estate The CCIM/Landauer database today released second quarter data that indicates a new record set for commercial real estate sales. For the period April-June, $4.9 billion in sales were reported, surpassing 1996's last quarter posting of $4.8 billion, the previous high-water mark high-water mark n. 1. Abbr. HWM A mark indicating the highest level reached by a body of water. 2. The highest point, as of achievement; the apex. for the current real estate recovery. This record-setting period also represents a 37.9% increase from the first quarter of this year. Other critical findings include: -- Benefiting from the bull market on Wall Street, Real Estate Investment Trusts (REITs) led all purchase categories with $1.7 billion in property acquisitions, representing a 34% share of total prices. -- The average acquisition price by REITs this quarter was $38.8 million more than three times the size of the average purchase for all investors in the quarter. -- Office property was the first choice of commercial property investors, with sales totaling $2.3 billion, almost half of the total quarterly sales volume. This activity, consistent with the mid-nineties industry recovery, drove capitalization rates Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. down to an average of 9.3% and a median of 9.0%. -- Aggregate dollar volume of transactions for the first half of 1997 was $8.4 billion, up 37.1% from the same time period in 1996. -- Land sales totaled $485 million, nearly 10% of investments, suggesting a boom in construction toward the decades end. -- The West Coast led the nation in sales volume for the second consecutive quarter by posting $1.7 billion in reported transactions, nearly one-third of the country's total. This total is attributed to Californias brisk economic recovery, in which investors have been wooed back by strong appreciation potential. -- Retail property sales will simmer down in late 1997, reflecting a continuing shakeout Shakeout A situation in which many investors exit their positions, often at a loss, because of uncertainty or recent bad news circulating around a particular security or industry. Notes: During the dotcom boom and bust, numerous shakeouts occurred. among stores. -- The Southeast Region led the nation in deal count, with 90 reported transactions. "Naturally, these findings are encouraging to commercial property professionals, who can benefit from the opportunities in increased construction and the West Coasts continued economic recovery, said Daniel Page, CCIM CCIM Certified Commercial Investment Member CCIM Centro Cultural Islámico de México CCIM Client Component Installation Manager (Microsoft) CCIM Comité Consultatif pour l'Informatique Médicale CCIM Command Computer Input Multiplexer , president of the Commercial Investment Real Estate Institute (CIREI CIREI Commercial Investment Real Estate Institute ). But beyond our industry, the figures reveal healthy strides toward a continued robust national economy, powered by a surge of investment that benefits our entire nation." The CCIM/Landauer Investment Trends Quarterly is published by CIREI and Landauer Associates. The CCIM/Landauer survey is a broad-based sampling of commercial real estate transactions reported by Certified Commercial Investment Members (CCIMs) throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The Commercial Investment Real Estate Institute is an affiliate of the National Association of Realtors The National Association of Realtors (NAR) is made up of residential and commercial realtors who are brokers, salespeople, property managers, appraisers, and counselors, and others working in the real estate industry. and is recognized as the preeminent authority on commercial real estate investment. Its nearly 6,000 members have earned the CCIM professional designation and form a business network encompassing 1,000 markets throughout North America. Landauer Associates, founded in 1946, is a leading international real estate counseling firm that provides a range of specialized services for investment-grade real estate. Landauer maintains offices in Atlanta, Boston, Chicago, Dallas, Fort Lauderdale Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Washington, DC, and Sydney, Australia. Editors Note: The information contained in this release summarizes the returns of the second quarter data. A complete study including graphs is published in the CCIM/Landauer Investment Trends Quarterly, available through R.J. Sirois, Commercial Investment Real Estate Institute, at 312/321-4494, or at rsirois@cirei.com CONTACT: Din & Pangrazio, Inc., Chicago Andy Jurkowski, 312/807-3601 |
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