CHICAGO—The CCIM Institute recently conducted a survey of its members for its Quarterly Market Trends report that provides yet more evidence of a broader economic recovery. The Chicago-based group found that 54% of the members that participated in the May/June 2014 market intelligence survey reported a greater overall deal flow than during the same time frame in 2013. And 66% said they fielded more serious inquiries from potential buyers than in the second quarter of last year.
Members also had greater success with industrial deals. Seventy percent of respondents told CCIM they experienced greater industrial deal flow year-over-year. In addition, 82% received more serious inquiries from potential buyers over the same period last year. And 52% of the respondents reported higher prices for these industrial assets. Cap rates seemed more stable, with 60% reporting steady rates and 32% reporting a decline.
The multifamily sector has been hot for some time, and many have speculated that the good times will end soon. But for this survey, CCIM members ranked the sector highest for investment conditions among the five major property types. On a scale of 1 to 5, multifamily investments ranked 4.05, followed by industrial at 3.56, retail at 3.32, hospitality at 3.28 and office at 2.88.
Other highlights include:
• In the South and West regions, 32.9% and 25.4% of respondents respectively said their regional economic climate is booming.
• In addition, 60% of CCIM member respondents said they expect credit conditions to continue to improve, while 35% said “the current financing climate is the new normal in their region.”
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