Crexi released October trends data showing mixed results. The data came from their own commercial property listings, so it isn’t necessarily representative of broader national trends. But given the company’s size, it should be an interesting view of the markets.
Retail asking prices were down a bit to $276.37 a square foot but were still 6.6% above October 2023 pricing. Asking rate caps have been at 6.51% since March of this year. But selling caps had a reduction, falling six basis points. That still leaves them at 5.34%, “the drop indicates a lessening of retail-related risk assessment.” In leasing, asking and effective rents were up in the month, given increased demand by tenants. Effective rents closed at $19.40 annually per square foot; landlord’s median was $18.37. National retail vacancies were at the same 4.1% that they were in the two previous quarter.
Office asking prices had been growing for six months, however they fell to $247.04. Occupancy was up slightly to 79.2% from 79.4% the previous year. Absorption was 2.46%, down from 2.7% in August. Office listings closed at a median $210 per square foot. Asking lease rates varied from $19 to $20 per annual square foot. Effective lease rates were $19.77. Leasing activity grew 0.4% quarter-over-quarter to 50.4 million square feet.
Industrial asking prices were fairly steady in October, falling less than $0.40 per square foot from September. The median asking price held to $110.64 per square foot. Asking cap rates were up by only three basis points from September. Sold cap rates fell to 7.23%. There was a slight cooling of demand as absorption fell slightly to 1.48%. The median closing prices were at $105.87 a square foot.
As for lease prices, asking in industrial was about $15.00 per square foot. Effective rates were $12.00, “indicating some tenant negotiation power in the market.” Overall, there’s less leasing activity and “significant delivery in new warehouse construction.”
Multifamily remained a strong market. The average price per square foot reached $170.30. The sector’s overall absorption fell 1.48%. Median sold pricing was $218.55. Rising cap rates suggest that investors are watching risk more. “High property values and interest rates may limit growth as affordability concerns weigh on the market.”
Rent growth in multifamily was 2% year over year, the highest comparative growth since 2023 Q1. But that is below the pre-pandemic average of slightly over 4.0%. Vacancy rates are stable at 8.7%.