Dive Brief:
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Commercial real estate transactions have increased every year since 2010 and are expected to continue to climb through 2017, the Urban Land Institute predicted.
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In addition, the value of each transaction is forecast to increase by 10% this year—less than last year’s hike of 13%, according to William Maher, director of North American strategy for LaSalle Investment Management, who contributed to ULI’s latest Real Estate Consensus Forecast.
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Maher, who spoke at ULI’s spring meeting in Houston last week, forecast almost $500 billion a year in transactions over the next three years.
Dive Insight:
Demand is so strong that speculative construction of office buildings—usually tempered by an inability to get financing unless pre-construction leases are in hand—is booming. In Dallas, for example, more office buildings are under construction than at any time since the commercial building boom of the 1980s, according to The Dallas Morning News.