More Doubts Infect a Late-Stage Market

Main Street occupier and investment market fundamentals were steady through three quarters of the year. But the economic underpinnings of the long CRE bull market ride have loosened and frayed, and small business owners and small-cap investors have taken notice.

A Market Poised for a Late Stage Course Adjustment

The most favorable reading of second quarter results was that market stability prevailed. But there is no denying that small-cap CRE space market and investment trends have flattened out and appear vulnerable.

Supply Scarcity Cramps Industrial Sector Demand

Stresses on the occupier market were exposed during first quarter as supply’s long-standing deficit finally exacted its price in terms of curbed demand generally and negative net absorption specifically in the industrial sector. Similar cooling has emerged in the investment market.

A Year of Living Cautiously

By closing out fourth quarter on solid footing, small-cap CRE fundamentals offered encouragement for investors and lenders on the new year's prospect. Yet cracks in the foundation persist, raising some concern over the future durability of the market's expansion.

Fundamentals Advance, Extending Investment Opportunities

Solid third quarter fundamentals combined with strong optimism among Main Street businesses sustain a thriving small-cap CRE market.

Crosswinds Emerge at Mid-Year

Generally, favorable small-cap space market and investment fundamentals progressed through second quarter. Yet the occupier demand trend may create headwinds for future growth.

Market Watchwords: Get While the Gettin’s Good

Re-assuring signs of the market’s durability from first quarter fundamentals offer hope to investors and lenders for a repeat of last year’s exceptional transaction sales volume and SBL originations.

Solid Q4 Results Fuel Optimism for 2018

Rejuvenated small business growth has supported a trifecta of vigorous small-cap property fundamentals, peak sales and robust loan originations that shows few signs of abating soon.

Leasing Velocity Retreats as Cycle Grinds On

Space demand advanced at a markedly slower pace during the most recent quarter. Yet rent growth hit new highs and small cap CRE prices were re-invigorated.

Mixed Market Signals Materialize in New Year

Fundamentals posted another generally positive quarter to start out the year, but mixed space market conditions as well as modest investment sales and pricing trends collectively serve notice.

Market Advances at a Slower Pace

While small cap CRE market and investment conditions improved during second quarter, a growing body of evidence suggests the market is nearing a peak.

Investment Domains Begin to Bifurcate

Sales volume dropped in July for both large and small cap CRE domains, but the similarities end there. Transaction activity in the large cap arena is in a prolonged drought abetted by unstable asset prices. Small cap trends have been more favorable.

Investment Trends Signal Heated Second Half for 2016

Improved stability in financial markets has bolstered investor sentiment; so, too, have core fundamentals underscored by a surge in rents. As a result, small balance investors have gained a collective second wind and are driving asset sales and prices higher.

Space Markets Provide a Lift for Investments

After the recent pullback in investment sales and prices, impressive second quarter space market fundamentals re-assure small balance lenders and investors that there’s plenty of gas left in the tank.

Momentum in Investment Property Sales and Prices Slows

Chalk it up to market uncertainties and/or investor fatigue, but the dynamic pace of growth in the CRE investment market has hit a speed bump.

Investors Turn Bullish At Quarter Close

Small cap CRE investors returned to the marketplace in force, elevating property sales to a first-quarter high as core fundamentals shine.

Investor Wariness Trumps Strong Fundamentals

Small cap space market fundamentals turned in a solid first quarter, but investment activity waned as investors were largely focused elsewhere, i.e., on choppy financial markets.

Market Expansion Gets Off to Slow Start

Small balance loan originations peaked last year and helped boost property sales to another record high. In the aftermath, January’s transaction volume dipped and prices flattened, but the small-cap CRE recovery remains largely intact.

Small Caps End Year on High Note

Deal volume topped $90 billion in 2015 for the first time as rents and asset prices strengthened in most markets.

Property Sales Advance to New High as Fundamentals Shine

Annual sales volume set a new record in November by capitalizing on exceptional trends in space market fundamentals.