Our 2016 Capital Flows Year-End Review and Outlook Report highlights recent shifts in U.S. property markets, including a greater dispersion of investment dollars throughout the country as well as slowing price gains and flat to rising capitalization rates in many metros. Still, real estate capital markets continue to benefit from strong property fundamentals, low interest rates and strong demand from investors, particularly offshore sources.

Overall, we expect commercial real estate sales to remain healthy in 2017 and into 2018, as demand remains strong and many investors have ample stockpiles of capital at their disposal. But rising interest rates and record prices in many markets seem likely to deter some buyers, to moderate volumes and to push more activity into secondary markets — a trend that gained momentum last year.

Key takeaways from this report include:

For more detail, download the 2016 Capital Flows Year-End Review and Outlook Report.