Crexi National Commercial Real Estate Report: July 2022

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Welcome to the July 2022 release of our Crexi Trends report. Each month, we analyze Crexi’s database to identify relevant activity and patterns to share key insights with our users. 

Our report showcases trends found across Crexi’s commercial property listings in July, evaluating average price per square foot, search behavior, occupancy, and other noteworthy metrics. With this information in hand, we hope to arm principals, tenants, and brokers alike with actionable learnings to make well-informed commercial real estate decisions.

chart of Month-over-month average asking prices per asset class in July 2022
Average Asking Price per Square Foot and Changes Month-over-Month

July average asking prices indicate slight market contraction but are still among all-time highs.

Last month, the overall asking price per square foot for newly listed properties dropped just over 5% from June’s metrics. The drop in asking prices correlates with a tapering off of inventory and an increase in the average available square footage of new assets, which climbed nearly one thousand square feet. 

Despite the dip, July’s average asking price was still the second-highest all-time high and represents positive seller sentiment amid market uncertainty.

Retail shows promising pricing and occupancy data in July.

Retail was the asset class that posted the most minor decrease, with much data indicating a promising resurgence for the sector. Average asking prices per square foot changed by only 1.65%, compared to its nearly 5% climb in June. 

The number of unpriced listings for retail also dropped: only 10.2% of new retail assets lacked a price tag, compared to 14.6% year-over-year. We can take this drop in unpriced new assets as a marker of positive seller sentiment in the sector, as owners are more confident in achieving current asking valuations.

At the same time, retail reached its highest occupancy levels since July 2020, achieving 89% absorbed space on average and hitting five consecutive months of occupancy gains. 

Industrial and multifamily post noticeable dips in pricing and inventory with larger average building size.

Industrial‘s average asking prices lowered by 7.6% for new assets in July, a noticeable change, primarily due to the increase in average inventory size. The other post-pandemic darling – multifamily – posted a startling 18.13% decline in average asking prices due to a rise in the average building size. Fewer parcels with more units and available space came online in July, resulting in nearly a 7,000 average square footage expansion.

Space for lease holds steady month-over-month, with only restaurants and retail posting  significant movement.

On the leasing side of Crexi, average asking rates climbed a slight 1.58% in July compared to the previous month. Zooming in on asset classes, hardly any sector showed a significant change in asking rates. Restaurants saw a dip of 3.2% in average asking rate per square foot, while retail experienced a slight 1.1% rate gain from June. 

Landlords also listed  inventory levels and types comparable to the previous month, indicating a steady market amid slight economic turbulence. We’ll likely see activity resume later in Q3, following promising tailing off of inflation and employment metrics in July.

Houston retains the top spot for buyer and tenant demand, while coastal and Sunbelt cities attract attention.

Houston attracted the most search activity on Crexi for another month on buyer and tenants’ parts, with 2.5% more searches on average involving the Texas metro. Buyers also showed increased interest in Los Angeles and New York, with 16% and 13% more search activity in each coastal city.

On the leasing side, the Sunbelt attracted the most tenant attention in July. Last month, Orlando, San Antonio, Miami, and Atlanta were among the top ten most-searched cities on Crexi’s leasing platform.

Highest Average Asking Price per Square Foot By MSA — July 2022

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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Crexi Insights
Crexi Insights

Marketing Team at Crexi

Crexi makes CRE easy by consolidating the entire commercial real estate process into a single ecosystem.

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