National office building sales activity has improved for the first half of 2024, rising 22% to $25.8 billion, but capital markets continue to lag a recovery seen in office leasing, JLL said in its Q2 2024 U.S. Office Market Dynamics report. An "entity-level medical office portfolio" accounted for the uptick, according to the real estate giant.
"More meaningful acceleration will depend on improvement in the interest rate outlook, which can begin to moderate costs of capital and stabilize asset valuations," JLL said. The brokerage expects the Federal Reserve to cut rates by 50 bps [basis points] by year-end.
Over the medium term, $500 billion in loan maturities through 2028 were likely to support transaction volume, JLL added.
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