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United States : Office sales up 25 percent year-over-year amid signs of increasing economic activity and job growth.

The U.S. economy is demonstrating signs of increasing economic activity, while both Europe and Asia are showing signs of reaching stall speed, according to the September edition of the BRIEFING, a report compiled by Transwestern. If job growth continues to stay strong, consumption and retail sales are expected to see some lift. The Federal Reserve s withdrawal of stimulus and ultimate rate increases will cause some drag to the economy, but growth should improve at a rate of 3.0 percent.

The major commercial real estate property types saw year-over-year increases in sales in the second quarter, according to the Real Capital Analytics 2014 Mid-Year Review. Multifamily had a 39 percent increase year-over-year with $26 billion in sales. Office assets saw $27.2 billion in sales, a 25 percent year-over-year increase. Industrial sales totaled $11 billion, marking a 13 percent year-over-year increase. Retail properties posted slightly ahead of last year with $14.4 billion in sales.

While the U.S. is making strides, the Eurozone appears to have stalled again, with zero growth in the second quarter. World production is up 12 percent from pre-recession levels, but that s mainly due to Asian countries where production is up more than 60 percent.

Uncertainty in the Middle East and Ukraine, along with the Federal Reserve unwinding quantitative easing, has led to a sell-off of junk bonds as average yields rise from below 5.0 percent to 5.78 percent. In May, junk bond funds took in $2.61 billion, and then the withdrawals began. Withdrawals totaled $1.14 billion in June; $5.4 billion in July; $1.3 billion in the week ending August 1; and $7.1 billion in the week ending August 7.

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Publication:Mena Report
Article Type:Financial report
Date:Sep 23, 2014
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