We’re proud to present our September 2021 Crexi Trends report. Each month, we crawl our platform’s database to discover and analyze relevant trends to curate the most actionable insights for our readers.
September’s report highlights patterns identified across Crexi’s commercial real estate listings based on average price per square foot, search behavior, occupancy, and other notable data. With this information in hand, we seek to equip investors, tenants, and brokers with relevant data to make well-informed investing decisions.
Average Asking Price per Square Foot in September and Changes Month-over-Month
Overall asking price per square foot rose in September, recovering previous losses in Q3 2021.
September commercial real estate activity on Crexi revealed a recovery in overall asking price per square foot from losses earlier in the quarter. The average asking price per square foot climbed 4.16% compared to August metrics,ending the month just 1.48% shy of Q2 highs, even though slightly fewer assets came online in September than in the rest of Q3.
In the same period, occupancy percentages showed their third consecutive month of growth, hitting 84.05% across asset classes, the highest levels Crexi has observed since August 2020. This growth shows promising returns of tenant absorption across asset classes, despite potential uncertainty in the office sector due to Delta variant-related concerns.
Industrial and multifamily assets bounce back after slight corrections.
Following two consecutive months of corrections, industrial and multifamily assets are showing 4.16% and 3.8% gains in average asking prices in September. For industrial real estate, in particular, occupancy levels showed a remarkable jump to 81.49% (from 75.31% in August) as tenants surge to acquire available warehouse and logistics space ahead of the holiday-driven e-commerce rush.
Multifamily also replaced losses from earlier in the quarter, yet we observed a rise in unpriced listings on Crexi. Nearly 20% of multifamily assets added in September were unpriced, compared to 11% in the previous month, potentially indicating a changing preference to let the market determine asset values as the federal and local governments wind down renter protection and stimulus measures.
Office and retail prove resilient despite Delta variant concerns, delayed return to work, and labor shortages.
Despite the ongoing debate of when and how the workforce may return to physical spaces, the office sector displayed a modest 2% gain in average asking prices, with a corresponding 5% jump in average occupancy levels. In September, we also observed a 12.3% surge in new co-working spaces added to Crexi, as smaller offices become a more viable option for a slow return to in-person work.
Retail also showed promising gains, with average asking prices up 3.8% compared to August metrics indicating returning confidence in the sector and hinting at a surge of demand ahead of the holiday shopping season.
Leasing rates decline slightly, yet COVID-impacted assets hold steady.
September average asking rates generally held steady compared to August metrics, despite fewer new assets coming online.
Industrial average rents showed the most noticeable gains, rising 2.9% in September, while office and retail rates remained steady. In the same period, restaurant asking rents dropped 4.27% compared to the previous month, and while the change is small, it returns to the lowest asking rates since January 2021.
Las Vegas demanding attention with a noticeable increase in buyer and tenant interest
In September, Crexi observed noticeable activity flocking to Las Vegas properties on both the buyer and tenant side of the commercial real estate industry. Las Vegas searches were up 39% for Las Vegas properties for sale, while lease activity for Las Vegas rentals was up 35.5%.
In the same period, New York experienced a 7.9% decrease in buyer attention on Crexi, while powerhouses Houston and Dallas both experienced similar levels of search activity month-over-month.
Highest Average Asking Price per Square Foot By State — September 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.