U.S. Property Markets Post Strongest Sales Volume Since 2007











“Children are all foreigners.”
-Ralph Waldo Emerson

Lodging, Office Sectors See Strongest Gains as Yield-Seeking Investors Target All Types of CRE Across Broad Array of Markets

CO STAR   _  By Randyl Drummer  January 15, 2014

For buyers and sellers of commercial property, 2013 was a very good year. Total commercial real estatesales are projected to be more than 18% higher in 2013 from the previous year as U.S. property fundamentals and the economy continued to improve and investors in all property types fanned out into smaller markets in search of higher returns, according to preliminary CoStar COMPs transaction volume.

Sales of office, industrial, retail, multifamily, hospitality and land totaled $366 billion in 2013, 17% higher than the $312.4 billion in property that changed hands in 2012, based on property transactions of all sizes that closed by Dec. 31, 2013 and were recorded by CoStar Comps as of Jan. 15, 2014. CoStar is continuing to track down and tabulate additional 2013 property transaction activity, which is expected to boost total sales for 2013 to nearly $370 billion when all transactions are counted.

In any case, the preliminary figures clearly reflect the strongest year for CRE investment since 2007, when $489.6 billion in total transactions were recorded.

As of the second week of January, property sales totals for the fourth quarter of 2013 were below the record-setting volume of a year ago, with a preliminary $106.3 billion in sales tallied as of Jan. 15, though that number is almost certain to rise in coming days and weeks. Property sales spiked in December 2012 as investors hustled to close deals prior to year-end, driven in part by concern over anticipated tax hikes and the restoration of previous tax rates for capital gains. The rush helped drive total CRE sales volume to $115.86 billion in fourth-quarter 2012.

In CoStar’s just-released national market reports, vacancy rates decreased and net absorption continued its strong pace in the U.S. office, industrial and retail markets.

Editor’s Note: CoStar economists will drill further into the most recent fourth-quarter and yearend 2013 numbers starting with the State of U.S. Office Market Yearend 2013 Review and Forecast on Jan. 23, followed by review and forecast webinar presentations for the industrial market on Jan. 30, retail on Feb. 6 and multifamily on Feb. 13. CoStar subscribers may log on and click the Knowledge Center tab at the top of the home page to register.

For commercial property sales tallied as of Jan. 15, investors were especially active in the hotel property sector, with hospitality investment seeing a 40% increase to lead all major property categories in 2013, followed by sales of industrial property, which increased 23%. Office sales rose 18% and led all building types in dollar volume, followed by multifamily sales, which rose 14%.

Retail property sales rose 10% over 2012, while land sales increased 5%.
Rebounding Investment Activity Evident in Major Markets
The rebound in activity in the Manhattan office market helps tell the story of the U.S. office investment market last year. More than a half-dozen building sales and partial equity stakes in buildings were valued at more than $1 billion in 2013, all located in Manhattan. In 2012, no single-property CRE sales eclipsed $1 billion. Similar blockbuster transactions closed in the industrial, retail, multifamily, hospitality and land markets around the U.S. during 2013.

Another hallmark of 2013 was the spread of activity into secondary and tertiary markets in all property types as rising prices and diminishing supply compelled investors to seek higher yields outside of New York City, Chicago, Washington, D.C., Los Angeles and San Francisco.

The booming Texas economy and the recovery in other Sun Belt markets has sparked investor demand in such non-gateway markets as Austin, Dallas, Houston, Denver, Phoenix, Miami and Atlanta, according to Steve Pumper, executive managing director of capital markets for Transwestern.

“In our estimation, this recovery will continue into 2014 and beyond,” Pumper said. “For the Sun Belt markets that have not yet experienced rent spikes, we expect them to see increases within the next 12 to 18 months.”
Interest Rates Remain Top Concern
The main question facing commercial property investors in 2014 is what will happen with interest rates. The 10-year Treasury bond yield, currently around 2.88%, could increase to 3.25 to 3.50%, possibly impact property pricing and development costs, Pumper said.

The improving economy also translated into stronger investment volumes around the world, with a solid fourth quarter pushing global 2013 investment volumes up 18% to $549 million, according to preliminary figures from Jones Lang LaSalle.

“The desire of experienced investors to look at opportunities which require additional asset management or more creative solutions has helped push 2013 volumes past our initial expectations,” said Arthur de Haast, lead director with JLL’s International Capital Group. “With this trend expected to continue into 2014, we are confident that investment volumes will continue to grow.”


A little about me and my expertise – video





I go to great heights to sell or purchase your land






Facts of Arizona – year 1848 to 2013




Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Investment Properties in Phoenix.



View my listings and my profile at:





What is a CCIM?


Join My Mailing List



Please go to my web-site and get all the newsflashes and updates in Commercial Investment Real Estate in Phoenix and Commercial Investment Properties in Phoenix daily




Follow me on Facebook:


Follow me on Twitter:


Follow Me on Linkedin:


Follow Me on Google+



Walter Unger CCIM, CCSS, CCLS

I am a successful Commercial Investment Real Estate Broker in Arizona now for 20 years and I worked with banks and their commercial REO properties for 3 years. I am also a commercial landspecialist in Phoenix and a Landspecialist in Arizona.





we are at on the a rise of the cycle in Commercial Real Estate.  so there is only one way and it’s called we are going up and now is the time for you to expand, upgrade or invest in Commercial Properties in Phoenix.  The prices on deals I may get you will not be around forever.



  We barely could give land away the last few years, but times are changing.  Even in those meager years, I sold more land across the state than most other brokers. Before the real estate crash I was a land specialist in Arizona with millions of dollars of transactions, but then I had to change and also sell other commercial investment properties, which was fun, but I am a Commercial Landspecialist in Arizonal, a Commercial Land Specialist in Phoenix and love to sell land, one acre to thousands of acres.


If you have any questions about Commercial Investment Properties in Phoenix or Commercial Investment Properties in Arizona,  I will gladly sit down with you and share my expertise and my professional opinion in Commercial Properties in Phoenix or Commercial Properties in Arizona with you.Obviously I am also in this to make money, but it could be a win-win situation for all of us. 


Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207 or Office:480-948-5554






Thank You


Walter Unger CCIM

Associate Broker,  West USA Commercial Real Estate Advisers

7077 E. Marilyn Road, Bldg 4, Suite 130

Scottsdale, AZ 85254

Cell:      520-975-5207   

Office :  480-948-5554

Fax: (480-658-1172  



View my listings and my profile at:





a little about me and my expertise – video


commercial-investment real estate adviser-land specialist




What is a CCIM?



Delivering the New Standard of Excellence in Commercial Real Estate 


  • Commercial Real Estate Scottsdale
  • Commercial Real Estate Phoenix
  • Commercial Real Estate Arizona
  • Commercial Investment Properties Phoenix
  • Commercial Investment Properties Scottsdale
  • Commercial Investment Properties Arizona
  • Land Specialist Arizona
  • Arizona Land Specialist
  • Land Specialist Phoenix
  • Phoenix Land Specialist
  • Land For Sale Phoenix
  • Land for sale Arizona
  • Commercial Properties For Sale Phoenix
  • Commercial Real Estate Sales Phoenix
  • Commercial Properties Phoenix
  • Commercial Properties Arizona
  • Commercial Land Specialist Phoenix
  • Commercial Land Phoenix
  • Multifamily land Phoenix
  • Retail Land Phoenix
  • Industrial Land Phoenix
  • Land Commercial Phoenix
  • Land Retail Phoenix
  • Land Industrial Phoenix
  • Land Multifamily Phoenix
  • Industrial Land for sale Phoenix
  • Land Industrial
  • P
  • Investment Real Estate


Disclaimer of Liability

The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.