2015-05-14bloomberg.com

Demand for property from warehouses to skyscrapers is booming, helped by more than six years of Federal Reserve efforts to stimulate economic growth by keeping interest rates low, and stockpiles of cash from overseas investors seeking a haven... Commercial real estate transactions jumped 45 percent by dollar volume in the first quarter, an increase driven by sales of multiple buildings or entire companies... the second quarter may be one of the biggest on record for property transactions, according to Real Capital.

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As values climb, returns are shrinking. For an office building in Manhattan, the capitalization rate -- a measure used to calculate the yield on a property investment -- has declined to 4.1 percent, the lowest since December 2007, according to Green Street Advisors LLC.



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