Deal-making volumes in the Commercial Real Estate industry have continued to rise, significantly passing analyst projections. These strong levels are due to a healthy increase in investor demand and abundant capital.
RealINSIGHT Marketplace noted that they have seen an especially robust transaction volume in retail during this time. The company’s auction in May featured nine retail properties and all of them transacted above their transacted value. They also had a similar trend in June, where their auction averaged 13 registered investors per asset.
The rise in auctions has been clearly prevalent in the CRE industry during this time. The average contract price has increased from 41% since before the pandemic. The active momentum brings tremendous opportunity to the market and an optimistic outlook for a healthy turnaround.
“We’re currently in a unique and compelling environment to sell commercial real estate. We are dealing with a health-based crisis, very different from previous recessions caused by over-leveraging. That means there is still a tremendous amount of capital ready and waiting to be deployed. Opportunistic investors have been watching for any stumble in the steadily strong market and are now turning to auctions to find assets and place capital quickly,” says Damian Smoter, Vice President of RealINSIGHT Marketplace.
Source: CRE Market Remains Active – RealINSIGHT Marketplace
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About RealINSIGHT Marketplace
RealINSIGHT Marketplace is the leading platform for commercial real estate transactions, bringing buyers, sellers and brokers together to efficiently list, market and close deals. The platform allows local, national, and global investors the opportunity to quickly review and bid on assets throughout the country. The auction platform is managed by a dedicated team of commercial asset experts with more than $11 billion in online real estate sales. RealINSIGHT Marketplace has completed over $2.7 billion in transactions since its inception in May 2017.
