Crexi National Commercial Real Estate Report: October 2021

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We’re proud to present our October 2021 Crexi Trends report. Each month, we examine our platform’s database to discover and analyze relevant trends to curate the most actionable insights for our readers.

October’s report identifies patterns observed across Crexi’s commercial real estate listings based on average price per square foot, search behavior, occupancy, and other relevant data. With this research in hand, we seek to equip investors, tenants, and brokers with relevant data to make well-informed investing decisions. 

Chart of Crexi's average prices per square foot in October 2021
Average Asking Price per Square Foot in October and Changes Month-over-Month 

The average asking price per square foot breaks Crexi records in October.

The overall average asking price for assets added last month climbed 5.31% compared to properties added to Crexi in September. Last month’s gains broke Crexi’s all-time high for average asking prices, surpassing the most recent record achieved in May 2021 and representing 20.53% growth year-over-year. 

In the same period, average asset square footage stayed approximately the same, indicating healthy signs of the commercial real estate market exceeding pre-pandemic levels.

Industrial showed stellar performance, with the most significant pricing gains and new inventory.

In October, industrial assets on Crexi showed more than 10% growth in the average asking price per square foot for new assets compared to the previous month. The gains indicate that demand for the sector has far from waned, even as other asset classes recover in a post-pandemic market.

The industrial sector also saw a 13% gain in new assets coming online in October, pointing to a healthy delivery of completed construction to the pool and pointing to property owners deciding to take advantage of a low cap rate market. 

Notably, industrial subtypes were among the most numerous to join Crexi’s marketplace last month, with a 14% gain in warehouse assets and a 26% gain in distribution inventory. 

Leasing average asking rates continue a growth streak alongside a surge of new assets.

Average asking rates per square foot per month climbed 2.65% from September leasing rates, just shy of Crexi’s all-time highs achieved in April 2021. Crexi also witnessed a surge of new leasing inventory come online in October, with more than 41% new spaces for lease added to the marketplace compared to the previous month. 

More owners are listing their space for lease on Crexi to meet the needs of growing market demand, as indicated by a 10% increase in lease search activity in October.

Restaurants showing promising growth in the leasing market, gaining on the retail sector.

Restaurant spaces for lease recorded a noticeable 6.43% increase in average asking rents month-over-month, pointing to a healthy returning confidence as reopened, indoor dining seems here to stay, and more restaurant businesses seek to occupy space.

This growth occurred in the same period retail experienced a stall in its growth in the summer months. Retail’s average asking prices fell less than 1% in October and posted practically no change from average asking rates in October 2020, despite a surge of new assets coming online.

Las Vegas stays lease market darling, while New York and Dallas post healthy growth in sale search interest.

On the leasing side of Crexi’s marketplace, Las Vegas was by far the most searched commercial real estate market for the second month in a row, attracting 25% more actively-seeking tenants than Houston, the next most-searched region.

New York and Dallas each posted healthy gains in search activity from buyers, with the amount of interest on Crexi growing 11.8% and 10%, respectively, from September’s search activity. 

Highest Average Asking Price per Square Foot By State — October 2021

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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Marketing Team at Crexi

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