Welcome to the April 2023 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 April, 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.
Overall National Sales Trends
What the Data Says
- Overall average asking prices for new inventory added in April held steady month over month, moving less than 1% from March, with cap rates staying similarly unmoved.
- We observed an increase in average occupancy, with the amount of captured space rising by 2.5%, to 82% absorption in April.
- April revealed a slight drop in unpriced listings but significant gains in inventory hitting Crexi’s marketplace, with a 14.7% increase in new listings than what sellers added in March.
Asset Type Trends
Average Asking Price per Square Foot and Changes Month-over-Month
- Industrial asking prices rose slightly in April – up 2.6% monthly and 9.7% from the same period last year – while the proportion of unpriced listings landed at 20.6%, the highest since June 2022.
- Multifamily pricing posted the highest monthly gains, up 11.1% in April. In the same period, average occupancy rates for the sector hit their highest levels since August 2021 at 89.2%.
- Retail average asking prices were more impacted last month, with average asking prices down 7.6% compared to March. However, some of this is attributed to an increase in the average SF available for these new listings, suggesting that more sizable, big-box style stores hit our platform last month.
Key Takeaways
- Industrial demand is still strong but may still be constricted amid many construction deliveries and general strategic planning amid macroeconomic factors.
- Multifamily remains a strong core market, with sellers likely anticipating increased demand as commercial real estate stakeholders seek to allocate capital to time-proven sectors.
- Interestingly, office asking prices have remained relatively stable amid some concern, showing no more than 1.5% pricing fluctuations in either direction since the start of 2023. We can attribute this to healthy regional demand in cities such as Nashville and Austin, making up for office markets facing more headwinds.
Overall National Leasing Trends
What the Data Says
- In April, average asking lease rates surged and surpassed February levels, recovering ground lost by unusual numbers in March and reaching an average of $1.21 per SF per month.
- In the same period, we observed another swelling of rental inventory, with a 32.7% increase in new assets compared to the previous month. This is the fourth consecutive month we’ve observed leasing inventory gains.
Asset Type Trends
- Industrial rental asking rates bubbled up 10.4% month-over-month as supply struggles to keep up with demand in key markets and tenants opt to rent instead of own.
- Office leasing held steady with less than 1% change, but inventory skyrocketed in April, posting a 109% increase in newly available leases compared to March’s new stock.
- Retail asking rents rose 62.4% compared to new leases in March, reaching the highest averages since October 2022 and doubling what a statistical anomaly had caused to drop in the previous month.
Key Takeaways
- Offices’ rate stability in the wake of thousands of new lease spaces coming online again supports that strong, high-demand markets are buoying the overall sector as others like San Francisco and New York City continue to face challenges.
- In the retail subsector, average asking rates not only covered the anomaly experienced in March that impacted overall leasing averages but gained a significant lift on top of those numbers. Retail is still performing quite well, and despite impacted asking prices last month, tenants are still bullish on an active American consumer.
Regional Breakdown
What the Data Says
- Houston, Chicago, and Dallas held the top spots for most-searched cities regarding investors seeking new acquisitions in April, but all three saw slight declines in search activity, compared to the previous month.
- On the leasing side of our platform, Houston and Los Angeles held the top spots but saw a lessening in tenant lead activity. Interestingly, Phoenix and Miami made noticeable headway in attracting tenant demand, with searches up 19.6% and 8%, respectively.
Highest Asking Price by MSA — April 2023
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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.
