Crexi National Commercial Real Estate Report: May 2021

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We’re proud to release the May 2021 edition of our monthly Crexi Trends report. We regularly analyze our database, identifying relevant activity and patterns, to share critical insights with our readers.

This month’s report showcases trends discovered across Crexi’s CRE listings in May, based on average price per square foot, search behavior, occupancy, and other notable metrics. With this data in hand, we seek to arm principals, tenants, and brokers with actionable insights to make well-informed commercial real estate decisions. 

May monthly asking price per sf trends for Crexi asset classes

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

May saw a healthy surge in overall asking prices per square foot.

The average asking price per square foot rose noticeably in May, up 5.6% compared to April. This increase coincided with other promising indicators of returning demand and growing seller confidence in the market, including a decrease in total unpriced listings and an improvement in occupancy rates.

The number of unpriced Crexi assets dropped 2.16% month-over-month, with far fewer assets missing a price tag than at the start of 2021. At the same time, average occupancy rates rose to 82.91% for new listings, their highest point (up 6.73%) since September 2020. These changes are some of the strongest indicators of market recovery we’ve observed as the pandemic winds down.

While multifamily shows healthy growth, industrial asking prices indicate some correction.

May’s multifamily average asking prices surged 10.52% above April prices. The asset class continues to make leaps and bounds in pricing terms, despite a slight drop in May’s occupancy rates.

Industrial properties, conversely, showed a significant decrease in asking prices, dropping 6.68% from the previous month with a slight cap rate rise in response. While occupancy rates on industrial rates increased 11.59% in the last six months, this drop suggests the arrival of market correction for the asset type that proved most stable during COVID-19.

Falling average asking rates for lease suggest rising competition in supply. 

Overall asking lease rates reported their first drop since February, with the average monthly rate per square foot decreasing 7.88% month-over-month. An increase in the average available May lease square footage explains some of this decrease. However, a continuation of this trend could point to an abundance of supply in the marketplace, particularly as retail and office landlords try to attract returning tenants to their listings.

Industrial asking rate per square foot hits highest level since before the pandemic.

Despite some correction on the for-sale side, industrial leasing rates reached their highest point since pre-pandemic in May. While asking rates remained relatively stable, this increase clocks in at only $0.01 less per square foot than industrial’s all-time highest asking rate on Crexi.

All other asset classes observed a decrease in average asking rates in May, with office listings experiencing a 7.1% drop from the previous month. Again, this reflects landlords’ efforts to attract tenants to their listings as corporations put revised office space requirements into effect post-COVID.

Prospective tenants are increasingly seeking property in secondary markets.

May search activity on Crexi pointed to rising interest in secondary markets. Crexi users sought property for lease in Omaha, NE, 46.7% more in May. Charlotte, NC, experienced a rise in tenant interest 29.43% compared to April metrics, with lease property seekers focused on in-market properties. 

Highest Average Asking Price per Square Foot By State — May 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

Marketing Team at Crexi

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