CAPITAL MARKET: MAJOR DEVELOPMENTS

• US investment sales volume for all types of properties reached $127 billion in the second quarter of 2019.
• This represents a 2.3% year-on-year increase.
•  Multifamily and office properties are the primary contributors to the record-breaking investment volume growth.
• This growth was propelled by the need for properties in non-gateway locations such as Austin, Denver, and Nashville.
• Even if this solid sales volume failed to drive 1H19 volume levels above the 1H18 figures, the demand from investors is still unwavering and the complete 2019 volume is seen to end near this quarter's level.

• Capital rates remained the same at 5.6% in the second quarter of 2019 for all major property types.
• These figures were not impacted by changes in interest rates.
• The rates were also pushed up by solid "investor demands for real estate and favorable market fundamentals."
• The "10-year treasury rate was at 2% at the end of the second quarter."
• This broadened the "spread even as most major property types have undergone major cap rate compression in the current cycle."

• The national office rental growth rose to 3.5% year-over-year.
• This was propelled by a combination of the solid performance of primary and secondary locations such as Boston (8.6%), Portland (8%), and Oakland (6.1%).
• The industrial rental growth progresses at an almost record-breaking track for the whole country, with an 8.5% rise year-on-year.

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