We’re proud to present our March 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.
March’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 March and Changes Month-over-Month
Overall average asking prices increased in March as the market welcomed a surge of new listings.
On Crexi, we observed the average asking price per square foot rise a comfortable 2.72% in March from the previous month, with cap rates correspondingly compressing by a slight 0.14%. In the same period, occupancy rates experienced a steady gain of 1% as tenants acquired space and landlords listed their increasingly filled parcels.
Crexi also saw a significant jump in new inventory in March, with the number of new assets added totaling 19.7% more than February’s new listings.
Office and retail assets show promising gains in prices and tenant occupancy.
Among the asset types most heavily impacted by the pandemic, office and retail saw promising signs of prosperity in March. Office assets rose nearly 6% month-over-month, with occupancy increasing 2% in the same period, indicating a continuing “return to the workplace” and businesses carrying out their physical footprint plans as property values rise.
Shopping and other retail subcategories are back in full swing, with owners confident enough in their properties’ values to begin listing them on the market. In March, retail assets witnessed a 1.9% increase in average asking prices as well as hit an impressive 90% average occupancy for new listings. A surge in shopping centers added to Crexi also contributed to these gains: we saw more than 27% shopping center inventory added as compared to the previous month.
Multifamily sellers are increasingly confident, despite slight pricing corrections in March.
Multifamily saw a slight price correction last month, with the average asking price per square foot dropping 4.24%. In the same period, we saw a large number of smaller multifamily parcels that come online with less available square footage and a surge in new inventory, with a 23.8% increase in new apartment buildings.
Despite the pricing drops, sellers seem as confident in their multifamily property values as ever, with a noticeable reduction in unpriced listings. In March, the number of unpriced listings for multifamily properties hit 12.93% of new assets – significantly lower than February’s 20.17%.
Average asking rates for leases declined while special purpose assets shine.
Overall asking lease rates on Crexi posted their third consecutive month of decline, down 1.89% from February for all asset types. All property classes showed slight drops in asking rents except retail, which held steady, and special purpose properties, which saw a nearly 7% gain month-over-month. Special purpose assets cover property types that don’t fit traditional asset classes, such as RV Parks, self storage, historic buildings, etc.
Houston retains the title of most-searched city, despite slightly reduced activity.
Houston was the most-searched-for metro on Crexi for both prospective buyers and tenants in March, despite showing slight declines month-over-month in the amount of search activity. On the sales side, Dallas and Miami took second and third place as the most popular cities, while Los Angeles posted the highest gains in search volume, up 13.2% from February activity.
Highest Average Asking Price per Square Foot By State — March 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.