One of the Best Years on Record for Commercial Real Estate

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Last year ended with a whimper… But not for commercial real estate…

In the first six months of 2015, volume in U.S. commercial real estate grew 36% year over year to $255.1 billion – a pace well above that set in 2006. Despite interest rate headwinds, and calls that commercial real estate was in an unsustainable bubble, buyers showed little concern, pushing deals through.

By the end of the year, sales boomed to $504 billion – it’s biggest one-year total since the financial crisis. Overall growth in CRE was 16% higher than 2014. Industrial and hotel properties saw a 40% to 44% increase in transaction dollars.

Office space had growth of 10% in the year. Apartment growth was up 24%. The only sectors that saw slight declines were retail with a -5% drop and development sites with a drop of -1%.

There’s little reason to believe we’ll see a slowdown in interest for commercial real estate.  Looking forward to another hot year...