Third-quarter commercial real estate (CRE) transactions topped $140 billion globally--only the second time in six years that volume surpassed that level--according to a report from Jones Lang LaSalle (JLL), Chicago. [paragraph] This figure represents a 41 percent increase year-over-year and a 16 percent jump from the second quarter, with the largest growth taking place in the Americas and Europe. [paragraph] "Part of the increase in sales stems from investors seeking opportunities in a more diverse range of U.S. locations," said Stephen Collins, international director for JLL International Capital Markets. The expansion started with apartment and office properties, and broadened into other sectors. "The increasing number of transactions in Dallas, Atlanta, Chicago and Seattle shows that purchasers are now keen to look at properties in more than just the core tech and energy cities," Collins said.
U.S. multifamily invest-ment--which experienced a strong bounce-back after a relatively subdued second quarter--fueled the strong third-quarter showing. Apartment sales volumes surged to $25 billion in the third quarter, up 47 percent from the preceding three months. Investment sales in the sector continue to benefit from a number of factors, including very strong market fundamentals and capital stack liquidity and "the new mantra of the millennial population looking to rent and not own," the JLL report stated.
"Internationally, we're also seeing more investment activity in the hotel and industrial sectors in secondary and tertiary markets such as Southern and Central Europe," Collins said. Global investment sales have totaled $366 billion so far this year, a 21 percent jump from last year's pace.
David Green-Morgan, global capital markets research director for Jones Lang LaSalle, said he expects sales to continue to grow as economies around the...