We’re proud to present our November 2021 Crexi Trends report. Each month, we examine our platform’s database to discover and analyze relevant trends to curate the most actionable insights for our readers.
November’s report identifies patterns observed across Crexi’s commercial real estate listings based on average price per square foot, search behavior, occupancy, and other relevant data. With this research in hand, we seek to equip investors, tenants, and brokers with relevant data to make well-informed investing decisions.
Average pricing per square foot shows a slight decline from October rates in a sleepy November period.
The average price per square foot for new assets saw a 3.21% dip compared to October. However, the change was modest and still represents the highest average asking prices since the start of the pandemic besides last month.
The change is likely connected to a quiet November, as brokers with pricier deals tend to list earlier in the year or wait until the new year for demand to pick up. We saw the smallest number of new assets come online since June 2021, but this hasn’t stopped buyers from looking.
Buyer activity in November dropped 1.8% in November compared to the previous month, showing that interested property seekers continued to seek investment options despite the holiday break.
Industrial and retail pricing holds steady, with multifamily averages showing notable changes.
Industrial assets posted continuous pricing gains from October, albeit at a slower clip than the previous month (3% growth versus 8.53% for new assets.) Retail also held steady, with less than 1% growth in asking prices from October numbers.
Multifamily properties, however, experienced a noticeable dip on Crexi. Average asking prices fell 12.65% in November, yet cap rates remained below 6%, keeping the balance tilted still in supply’s favor.. The change is most likely related to fewer higher-value assets being added in November. Too, inventory added was of a smaller average square footage than previous months.
Asking rates for lease assets drop slightly, despite consistent tenant searching
On the leasing side of the market, we observed average asking rates mildly lower by 3.1% from the previous month alongside less new inventory. This again indicates lessened broker activity on larger assets in the holiday season before a more active new year. Still, interested tenants were more active on Crexi than in October, with a 1.5% increase in tenant activity in November.
Restaurant assets show the most significant change in leasing, while retail and office rates held steady.
While most asset classes in the leasing space held steady month-over-month, restaurant spaces for lease posted a noticeable change in November. The asset class’s average asking rents dropped 11.55% from the previous month, representing the biggest fluctuation since January 2021.
The change could reflect the coming cold season and its impact on outdoor and limited-capacity indoor dining in the era of COVID. However, the pricing fluctuation represents promising opportunities for actively-seeking restaurant tenants to expand to new facilities.
Houston stays high on search lists, with Chicago and NYC closing in.
In November, Houston was the most-searched city by principals on Crexi, with New York City following close behind in total search volume.
On the leasing side, Chicago displaced Houston as the most popular market for actively-seeking tenants, with a 3.83% gain from October searches.
Highest Average Asking Price per Square Foot By State — November 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.