Investor confidence in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – ended the first half of 2016 on a stronger note following a tepid first quarter with the CoStar Commercial Repeat-Sale Indices (CCRSI) reflecting the broad-based gains in commercial real estate prices and investment activity across regions and property types.
The value-weighed U.S. Composite Index, which largely reflects sales of high-quality, higher priced assets, such as those found in the U.S. and Philadelphia commercial real estate market, rose by 3.3% in the second quarter, while the equal-weighted U.S. Composite Index, which reflects the larger number of sales involving smaller properties, rose 2.1%. That compares with just 0.4% and 0.1% growth by the two indices, respectively, in the first quarter.
This report on national and Philadelphia commercial properties was made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.
While price growth for U.S. and Philadelphia commercial real estate properties resumed, the annualized rate of increase dropped into the single digits for the price indices during June, 9% for the value-weighted index and 6.8% for the equal-weighted index. The decline suggests that price growth may continue to plateau in 2016 as the current cycle enters its later stages.
As expected, investment sales volume declined from last year’s blistering pace. Total volume of property sales among national and Philadelphia commercial real estate listings was $57.7 billion in the first half of 2016, down 5.4% from the same period a year earlier. The U.S. property markets, however, received a boost from favorable market conditions in the U.S. and deteriorating geo-political conditions abroad such as Britain’s Brexit vote to withdraw from the European Community.
The CCRSI’s office, industrial and retail price indices in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – increased by a uniform but steady 1.9% in the second quarter, followed closely by the U.S. Multifamily Index, which increased by 1.8%. The Hospitality Index, which logged the largest peak-to-trough decline during the Great Recession, posted the strongest growth among property types during the second quarter, advancing by 4.5% to reach within 1% of its prior peak level.
The Prime Market Index, comprised of the large core coastal metros within each major property type, have generally increased more rapidly than the overall indices for the individual property types that comprise the majority of U.S. and Philadelphia commercial real estate listings.
For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.
Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.
Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.
As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals. If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.
Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.
