We’re proud to present our August 2021 Crexi Trends report. Each month, we analyze our platform’s database to discover relevant trends and curate the most interesting insights for our readers.
August’s report features patterns identified across Crexi’s CRE listings based on average price per square foot, search behavior, occupancy, and other notable data. With this information in hand, we seek to equip investors, tenants, and brokers with relevant data to make well-informed commercial real estate decisions.
Average Asking Price per Square Foot in August and Changes Month-over-Month
Retail properties for sale and lease enjoy significant gains.
Retail was the darling of August metrics, climbing by 2.54% month-over-month, the highest of any asset class on Crexi. In the same period, Crexi’s retail sector saw a surge of net-lease assets, with an 11.3% increase in new auto shops, a 16.7% rise in gas stations, and a 10% rise in QSR/fast food facilities available for sale. While these are not necessarily causally related, they could indicate an increasing market demand for net lease retail properties, particularly for reliable national tenants seeking to expand in a post-COVID economy.
Retail property for lease saw average asking rates per square foot jump 6.28% from July numbers in the leasing sector. These gains represent the most noticeable jump since April 2021 and a 10.1% rise from retail’s lowest point in January 2021.
Pandemic darlings industrial and multifamily see a slight correction in August.
Industrial assets posted a second consecutive month of slight decreases in average asking prices in August. Asking prices lowered 2.58% from the previous month, perhaps in response to investors considering office and retail assets more broadly as those sectors show more promising recovery post-COVID.
Multifamily experienced a similar change, with average asking prices dropping 1.95% for new assets listed on Crexi in August. However, both industrial and multifamily assets saw stable occupancy levels, little change in average square footage or new inventory, and steadiness in the number of unpriced listings. This minute correction further supports investors’ broadening their gaze to previously impacted asset classes as vaccinations continue and economic outlooks brighten.
Overall asking price per square foot held steady from July metrics.
Across asset classes on Crexi, August’s average asking price per square foot rose nominally by 1.07% from July averages. The average available square footage for rent also changed minimally for new August assets, while occupancy rates remained steady.
The unchanging metrics indicate a relative pause in market shifts in August, where some property types climbed in asset value as others fell and owners awaited updated economic outlooks impacted by the Delta variant before pivoting to revised strategies.
August office market sees pause in new inventory amid return-to-work concerns.
While average asking prices for new office properties for sale rose marginally in August, the sector’s participants seems to be waiting to observe the fallout of the Delta variant’s impact on the return to in-person working. The same period also showed a noticeable pause in specific office subtypes coming online, with fewer new co-working, executive, and medical offices than the previous month.
However, this far from means office demand has waned: Crexi observed a 4.21% increase in average asking lease rates for office properties compared to July listings activity.
New York is in high demand, with Miami trailing close behind.
In August, New York City continued to attract increased attention on Crexi, accelerating its hot streak with a 22.7% jump in buyers looking for available New York commercial property. NYC continues to gain on Houston — the number one most-searched city on the platform — by attracting 20.23% more searches to date this quarter than Q2 2021.
Hot off a streak of recent positive press, Miami also attracted a sizable portion of demand on both the sales and lease sides. Searches for Miami property for sale jumped 25% from July’s totals, while tenants looking for Miami leases searched 12.24% more than the previous month.
Highest Average Asking Price per Square Foot By State — August 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.