We’re proud to present our February 2022 Crexi Trends report. Every month, we crawl our platform’s database to discover and analyze relevant trends to curate the most actionable insights for our readers.
February’s report identifies patterns observed across Crexi’s commercial real estate listings in average price per square foot, search behavior, occupancy, and other relevant metrics. With this research, we seek to provide investors, tenants, and brokers with the insights they need to make well-informed investing decisions.
Average Asking Price per Square Foot in February and Changes Month-over-Month
Prices stayed stable month-over-month with occupancy rates climbing and more assets hitting the market.
Overall, average asking prices for new assets on Crexi showed little change from January. This stability is promising for the US market, particularly given the global stage of newsworthy events occurring in February. In the same period, occupancy rates modestly climbed, coinciding with New York and Los Angeles’ pullback of pandemic-era restrictions. These changes signal a good bounce back in the coastal metros.
In February, Crexi also observed a noticeable surge in new listings for sale compared to January, with nearly 18% more assets added. This third consecutive month of growth in total new listings added represents the CRE sectors’ buzzing return to activity after the holiday break.
Industrial and multifamily experience modest pricing growth, slowing from January surge.
Industrial and multifamily sectors were the only ones to show value growth in February, moving up 3% and 4% in average asking price. While both of these increases were at a slower clip than the previous month, the gains represent industrial and multifamily owners’ continued willingness to capitalize on returns and jump into a high-demand market.
Office and retail pricing holds steady with favorable occupancy rates and search activity gains.
Both office and retail property types remained unchanged in asking prices month over month, but other metrics indicate promising improvements in each sector. For offices, occupancy rates jumped more than 5% from the previous month, coinciding with the lifting of COVID restrictions and overall improved sentiment from employers about returning to the workplace.
On the retail side, Crexi observed a noticeable surge in search activity from investors. Searches for retail property for sale were up more than 20% compared to the previous month, indicating a surging interest in the asset class that continued long after the holiday season.
A surge in new for-lease assets came online in February with minimal change to asking rates.
Average asking lease rates remained virtually unchanged month over month, yet Crexi witnessed a glut of new lease spaces come online in the same period. Nearly 32% more spaces for lease were added to the platform in February compared to January. With COVID restrictions lifting in the most populated markets, this supply growth and unchanged pricing point to good times ahead for tenants.
Southern cities retain the top spot for sale property searches.
In February, Sunbelt metros Dallas, Houston, and Miami attracted the lion’s share of sales searches, with Miami earning the most growth with a 12% increase in search activity from investors. Houston was also a top contender on the leasing side but experienced a decrease from January’s tenant activity. Omaha also showcased significant growth on Crexi’s leasing platform, with tenant searches up 21.4% compared to the previous month.
Highest Average Asking Price per Square Foot By State — February 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.