Crexi National Commercial Real Estate Report: March 2024

Overall National Sales Trends

What the Data Says

• On a national level, March reporting showed little changes in overall average asking prices for new listings that hit the market on Crexi.
  
• Occupancy rates also remained steady from the previous month, averaging about 79.3% in March (the same as February for new assets added).
• Of note, we saw a slight uptick in unpriced listings on Crexi in March – up ~2% from the previous month – indicating slightly improved seller confidence in property valuations and willingness to negotiate more on pricing.

Key Takeaways

• Across specific asset classes, multifamily was the only major sector to post a decline in average asking price per square foot, with the average of new listings dropping just shy of 4% from the previous month.
  
• Office spaces for sale saw their second consecutive month of pricing gains thanks to Class A deliveries, while occupancy rose to 64.96% - its highest average level since September 2023.
• Multifamily, considered one of the most reliable assets in which to invest, is facing muted challenges in some markets where rent growth forecasts aren't matching the national state of the market, which accounts for its slight decline on our platform. However, rent is still up long-term, posting a 1.35% increase in new listings' asking prices YoY.
• The office sector continues to bifurcate, with overall asking prices buoyed by well-performing Class A facilities in key markets. In contrast, Class B and C buildings continue to adjust to lowered pricing expectations amid softening demand. In promising news, Placer.AI reported overall national foot traffic to offices was strongest in March 2024 since the start of the pandemic, only 32.7% below March 2019 levels.

Overall National Leasing Trends

What the Data Says

• The leasing market overall posted little change in March, the second month in a row with less than 0.25% asking rent movement in either direction on Crexi's for-lease platform.
• Slightly fewer assets came online in March than in February, but the inventory added still represented a healthy market for new for-lease listings, with the most assets added since September 2023.

Asset Type Trends

Key Takeaways

• Retail continues to command healthy, steady rent growth as of March 2024. In the last month of Q1, it posted the highest average asking rent gains across the different asset classes, with restaurant assets trailing less than one percentage point behind.
• After three months of muted rent growth, office space hit its first asking rent dip. The average rentable square footage of new office space added in the same period dropped slightly.
• Industrial saw slight asking rate corrections in March compared to the previous month, as the sector rippled with the aftereffects of new deliveries hitting the market and softening pent-up demand. While industrial experienced some corrections, the overall outlook for the sector is healthy, with incoming construction deliveries seeking to alleviate pressure, especially in markets where vacancy rates were near 1%.

Overall National Leasing Trends

What the Data Says

• Houston, Chicago, and Dallas remained the three most popularly searched cities on Crexi in March. However, Miami, Los Angeles, and Atlanta were the most active markets, with buyer searches on the rise. 
• Houston and Chicago maintained their status as the most-searched markets by active tenants in March, with Los Angeles ranking third overall market.

Highest Asking Price by MSA — March 2024

Disclaimer: This article's information is based on Crexi's internal marketplace data and additional external sources. While asking price in many ways reflects market conditions, variations in pricing are affected by changes in inventory, asset size, etc. Nothing contained on this website is intended to be construed as investing advice. Any reference to an investment's past or potential performance should not be construed as a recommendation or guarantee towards a specific outcome.

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