Crexi National Commercial Real Estate Report: December 2020

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Welcome to the December 2020 edition of our monthly Crexi Trends roundup. Each month, we scour Crexi’s database to identify relevant data and patterns and deliver key insights to our readers. 

This report covers trends observed in listings featured on Crexi’s CRE marketplace in December, focusing on average price per square foot, search behavior, occupancy, and other notable metrics. With this data in hand, we hope to provide investors, tenants, and brokers alike with actionable understandings with which to make well-informed commercial real estate decisions.

Chart of the Average Asking Price per Square Foot and Changes Month-over-Month in December
Average Asking Price per Square Foot and Changes Month-over-Month

Average price per square foot increased across multiple asset classes.

Despite fewer assets coming online, the overall average price per square foot for new properties saw its fifth consecutive month of increases. Multifamily made the largest price gains, increasing by 20.32% from November averages. Retail and office listings also saw increases in average asking prices, rising 7.02% and 2.48% respectively month-over-month. 

Conversely, industrial continues its downward pricing trend (as we noted in November’s trends report) alongside a downtick in new industrial listings hitting the market, indicating a slight market correction in the asset type.

December also saw occupancy rates finally level out across asset classes after seven months of pandemic-induced decline. 

Crexi observed leasing rates increase for the first time since September.

December metrics observed the first uptick in overall asking lease rates since throughout Q4 2020, with average rents across asset classes rising 1.73% month over month. Simultaneously, there was a significant drop in rentable square feet available: the amount of average square feet per lease listing dropped 15% from November into December. This indicates a rise in smaller units coming online for rent, likely in the form of subleases of smaller offices and retail assets. 

Pharmacies, Drugstores, and Hotels withstand the holiday slowdown.

Just as in previous years, the total amount of new listings added to Crexi in December decreased month-over-month, due to the temporary CRE hiatus of the holiday season. Only the Pharmacy/Drugstore and Hotel subtypes saw an increase from new listings added in November, with the number of assets increasing by 14.5% and 34%, respectively. On the leasing side, R&D subtypes were the only asset with an increase in new listings added — every other asset class saw a decrease month-over-month. 

Austin, Texas was the darling of CRE searchers.

The number of searches for commercial real estate in Austin on Crexi more than doubled in December. The surge in buyer and tenant interest in the city places Austin as the third-most-popular MSA on Crexi. Furthermore, we observed increased searches for Austin properties across asset types, with multifamily, retail, and land for sale ranking among the most popular property types.

Highest Average Asking Price per Square Foot By State — December 2020

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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