In 2013, there was an especially strong rebound for the property types and markets that had been the weakest in terms of recovery according to commercial property data and analytics firm Real Capital Analytics.
This rebound occurred amid a 19% year-over-year increase nationwide in commercial property sales worth $5 million or more. While nationally, transaction volume reached reached $355.4 billion. The Moody’s/RCA Commercial Property Price Indices were expected to post a 15% increase nationally year-over-year.
Driving the resurgence in markets and property types that time forgot was investors’ appetite for risk and higher yields. “Las Vegas is a prime example and it posted the largest price and volume gains of any market,” according to RCA’s US Capital Trends Big Picture overview report. “Atlanta, Tampa, Sacramento and even some of the tertiary markets also outperformed. Riskier property types such as unanchored shopping centers, resorts and limited-service hotels, and suburban offices also experienced strong rebounds.” If the trend continues, Vegas along with Phoenix, Jacksonville and Sacramento “are poised to outperform again in 2014.”