CRE Sales Activity Surpassing Pre-Pandemic Levels
- Through 3Q this year, CRE transactions are up 13% over same period in 2019; up 64% over same period in 2020
- Self-Storage and Hotel transactions exceeded 2019 levels by 56% and 46%, respectively
- Only Office is lagging below 2019 transactions, -5%, but Medical Office subsector is up by 12%
What’s Driving Record CRE Transactions?
- Strong liquidity allows investors to resurrect delay and deferred transactions in 2020
- Elevated inflation also drawing new investors as some property types can quickly adjust rents to offset inflation
Aggressive Sales Climate Putting Upward Pressure on Prices
- Average CRE prices are up 12% over 2019 levels; Industrial leads with a 22% rise, followed by Apartment at +12%
- National cap rates down about 30 bps, some markets and property types seeing record low cap rates
- While some subsectors are still recovering, overall CRE performance in 2021 has offset the hit in 2020
Year-to-date through 3Q
Includes sales $2.5 million and greater
Sources: Marcus & Millichap Research Services, Real Capital Analytics