No Late-Summer Doldrums – Sept. 29, 2025
August investment sales suggested a market taking a momentary breather rather than one losing momentum
The Major CRE Transaction Report for August is just out from LightBox, and it sheds significant amounts of light on the current investment sales market. Although transaction volume for the month was lower compared to July—in keeping with LightBox’s latest CRE Activity Index, released earlier this month—there’s more nuance in the sales figures than the basic topline number would suggest.
For starters, the number of nine-figure sales recorded in August was unchanged from July: 47, with large multifamily portfolios and trophy retail accounting for the lion’s share, and institutions leading the investor pack. Mid-cap deals ($50 million to $100 million) saw a wider range of property types as well as buyer profiles. There were also fewer of them: 65 in August, compared to 72 in July.
“Even so, mid-cap activity is still running 12% above the year-to-date monthly average, underscoring the steady flow of capital into this range where underwriting is more transparent and financing conditions remain manageable,” LightBox reported.
The August Activity Index similarly illustrated both seasonal patterns and continuing momentum. It registered 104.8 in August, down from 111.8 in July, “reflecting both seasonal late-summer slowdown and rising caution around rates, tariffs, and corporate earnings,” according to LightBox. “Yet the Index has now logged seven consecutive months above the 100-point benchmark, signaling that while momentum eased slightly in August, CRE activity remains on solid footing.”
Added Manus Clancy, head of data strategy at LightBox, “August looked more like a market catching its breath than one losing steam. Nine-figure deals held steady, which tells me there’s no real weakness at the top end. Mid-cap volume slipped from July’s peak but is still comfortably ahead of the yearly average. That’s a sign of discipline, not retreat, and it shows that capital is still very much in play.”
Beyond the high-profile, big-ticket deals—many of which have been reported on Connect CRE—one of the hallmarks of August transaction volume was a great divide between big gains and deep discounts. Across all size categories, the LightBox Transaction Tracker logged 865 closed U.S. deals in August, ranging from an $85,000 office to a $1.6-billion apartment portfolio. Among the 21% of deals that were repeat sales, 74% traded at a gain while 26% sold at a loss.
“Last month’s data offers evidence that most assets are appreciating, but when discounts occur, they can be sharp, particularly in the beleaguered office sector, a trend that marks a market in reset mode,” LightBox reported. “There’s demonstrable strength in select sectors and geographies, yet pockets of distress dragging values lower in others.”
The contrast is best illustrated by a pair of retail real estate transactions at opposite ends of the country. In New York City, the retail condo at the former New York Times Building (encompassing 245,000 square feet at 229 W. 43rd St. and 216–226 W. 44th St.) sold for just $28 million following foreclosure, a $267-million loss from its 2015 price. Conversely, a Beverly Hills luxury retail property sold for $400 million, an increase of more than $320 million since 2007.
“Together, these deals highlight the divergence between distress in weaker assets versus resilience and upside potential in trophy locations,” according to LightBox.