Crexi National Commercial Real Estate Report: March 2021

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Welcome to the March 2021 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. 

This report showcases trends found across Crexi’s CRE listings in March, 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 asset-class specific data from March on Crexi's platform

Average Asking Price per Square Foot and Changes Month-over-Month

Asking prices up across asset classes, recovering last month’s losses.

The overall asking prices per square foot climbed once more following a February drop across the board. 

In March, the average asking price jumped up 7.89%, with all asset classes showing growth except for multifamily. Multifamily pricing dropped a slight 2.85% for new assets in March, but the decrease potentially represents an approaching floor following the sharp drop in February’s multifamily prices. 

Retail led the charge in pricing gains, with over a 10% surge in asking price per square foot. This climb mirrors the sector’s slow and steady recovery as dine-in restaurants and in-store shopping once again become accessible to consumers. 

Shopping centers and restaurants are showing signs of life.

Along with a pricing surge, Crexi’s platform saw a 21.46% jump in the amount of total retail listings added for sale in March, led by a noticeable increase in both shopping centers and restaurants. The number of shopping centers available on Crexi rose 16.9% in March, which indicates sellers’ needs to relinquish such assets. The change also coincides with industry demand looking to creatively repurpose retail space

Restaurants are also seeing discernible signs of recovery in a nearly-post-pandemic society. There was a 14.6% increase in the number of assets added to Crexi in March. As states continue to reopen and vaccinations pick up the pace nationwide, restaurants saw a significant jump in asking rates for lease in March, rising by 7.63%. 

Non-traditional office lease types see a rise in inventory and asking rates.

Pointing to further signs of economic stirring and recovery is the rise in both inventory and asking rates for offices available for lease

In March, Crexi’s inventory observed a 23.4% jump in coworking spaces, a 10.5% rise in medical offices, and a 6.1% jump in flex office space added to the platform. Whether or not there is sufficient tenant demand to absorb such assets remains to be seen as organizations finalize their office needs and return to in-person work in a post-COVID world.

Texas luring back buyers and tenants with an increase in searches

Major Texas metros saw sharp jumps in traffic from Crexi property seekers in March. Houston attracted the lion’s share of tenant interest, with searches in the area rising nearly 19% in the region compared to the previous month’s search activity.

San Antonio also drew searchers’ eyes, with an 8.79% rise in buyers seeking property in the region compared to February numbers.

Highest Average Asking Price per Square Foot By State — March 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.

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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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