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4Q16 United States Capital Markets Report
 

NGKF Capital Markets presents the Fourth Quarter 2016 United States Capital Markets Report for the Intelligent Investor. The statistics and in-depth market perspective contained in the report illustrate current trends with a focus on national investment sales.

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Executive Overview
Sales Volume 2016 sales volume was 15% below 2015 levels, but was the third highest yearly total of the past decade and nearly matched 2014’s activity.
Cap Rates Cap rates are no longer compressing, but maintain a healthy premium to treasury yields.
Rent Growth Although rental growth has moderated throughout commercial real estate across various property types, multihousing and industrial rents continue to accelerate.
Supply and Demand Capital is predominantly focused on primary markets; however, yield-driven, opportunistic investors continue to bid on well-positioned, stabilized assets in secondary markets.
International Capital International investors purchased more than twice as much United States real estate as REITS in 2016, accounting for 16% of total sales.
Debt Markets Commercial and multihousing mortgages are expected to rise in 2017 to $515 billion, while debt outstanding is anticipated to grow to $3 trillion.