Goldman Sachs analyst Julien Blouin discussed preliminary February data from RCA for the American Real Estate market.

The analyst notes that in February, total transaction volumes rose 23% year over year, up from a decline of 3% year over year in January. This represents an increase of 7% year over year on a quarter-to-date basis in the first quarter of FY25.

The analyst writes that the growth reflects strong Office and Retail volumes, with modest Industrial and Multifamily transaction volumes.

Blouin anticipates additional upward revisions to February volumes, following an average 25% upward revision for the October to January period, with January volumes seeing a 13% revision in the most recent data release.

Taking about a recent conference, the analyst notes that Newmark Group, Inc. NMRK management highlighted that the commercial real estate (CRE) capital markets are experiencing increased activity due to the decline in treasury yields, particularly in terms of broker opinions of value (BOVs).

While the company noted that BOVs don’t always directly correlate to sales, they do generally lead to an increase in sales, adds the analyst.

The analyst stated the company notes that the activity is especially strong in New York City, with improvements also seen in Silicon Valley.

The analyst writes that the numbers are likely to be revised upwards when RCA reports the preliminary March data and final February figures going forward.

Blouin notes that the previous estimates for October, November, December, and January were revised upward by 37%, 39%, 13%, and 13%, respectively, from their initial publications.

Read Next:

• US GDP Growth Upwardly Revised In Q4, Trade Deficit Slightly Narrows As Auto Exports Soar In February

Photo via Shutterstock.