Real estate fundraising seems to be taking a break, or maybe even a long sabbatical. 2016 was slower than 2015, and 2017 is starting off significantly below either of those years. In fact, first quarter 2017 saw less capital raised by funds closing that quarter than any period going back to the beginning of 2013.

A total of 25 private-equity real estate funds recorded final closings during first quarter 2017, raising an aggregate total of $16.6 billion, according to IREI’s FundTracker database. This represents nearly $4.0 billion less than capital raised first quarter 2016, and $15 billion less than 2015. We also saw eight fewer funds close in first quarter 2017 than the same period 2016.

The average fund size increased in first quarter 2017 when compared to first quarter 2016, but fell well below the full year figures for 2015 and 2016. The average size of funds close