“For Sale” signs are a positive for the US commercial property sector 

Conventional wisdom says more ‘For Sale’ signs on streets means the property market probably isn't in the best of shape. However, the latest analysis published in Deloitte’s 2015 Commercial Real Estate Outlook appears to challenge this assumption. Transaction activity such as 'For Sale signs, it points out, has been the highlight of the US commercial property sector recovery. 

According to the Deloitte report, transaction volume in commercial property grew 16.4% year-on-year in the first seven months of 2014 to $204.2 billion. That’s a lot of For Sale signs… but the high volumes suggest that just as soon as the signs are being erected they’re being dismantled by voracious commercial property buyers. 

The analysis also shows that US commercial property is well and truly for sale as far as international investors are concerned. According to the report, “capital availability is increasing competition as both domestic and international investors show significant interest.” As a result, asset pricing in the commercial property sector is continuing to show sustained growth. 

And the merry-go-round of commercial property for sale hasn’t been limited to just the top end of town. Secondary markets in commercial property and other sectors have seen a strong pick-up in activity notes the report, “as investors seek opportunities in markets less competitive than the primary gateway markets.” 

What this means, says the report, is that the commercial property sector “is on more solid footing than it has been for quite some time.” With strong growth predicted over the next 12 months, we can expect to see continued waves of For Sale signs hitting US streets… but look a little harder and you’ll also see queues of commercial property buyers lining up to rip them down!