Crexi Reports “Healthy Dose of Optimism” in Buyers and Sellers
The second quarter saw both buyers and sellers of commercial properties growing more optimistic, according to Crexi’s latest national report. This “healthy dose of optimism” was reflected in a 6.46% quarterly increase in average asking prices on the strength of surging prices in May.
Comparatively muted changes in April and June indicated “a promising return to stability in market growth,” according to Crexi. “These twin pillars of growth and stability were underscored by the fact that Q2 showed the highest overall asking prices on Crexi since tracking began, with more than 27% gains in the average asking price.”
Occupancy rate averages also depicted a market headed towards normalcy after a period of disruption. New assets arriving in the market saw average occupancy grow by 3.05%. Although some fluctuation occurred month-to-month, Crexi says the growth still represents “a steady climb back to pre-pandemic levels.”
Q2 saw fewer assets enter the market than in Q1, with inventory levels comparable to the end-of-year lulls often observed in Q4. Nonetheless, Crexi reports that buyer activity on its platform achieve all-time highs in Q2, with overall property-seeking actions jumping 17% from the previous quarter and more than 89% from the year-ago period, when the pandemic was in its early stages.
In the same period, days on the market fell dramatically across asset classes, as average CRE sales closed 7.47% faster than the previous quarter. Crexi adds that digitally-facilitated transactions are speeding up and show no indication of slowing down across asset classes.
Looking at specific markets, Crexi notes that Tampa, Orange County and Austin received the most attention from property seekers. Dallas and Houston were also top market movers, garnering the majority of closed transactions in Q2.
Investor sentiment continues its focus on multifamily, despite other assets’ growing stability and prospects. Moody’s Q2 trends report stated that sector recovery accelerated during the quarter, with effective rent levels now only 2.5% lower than their all-time pre-pandemic highs.
“On Crexi, we observed similar acceleration signs in average multifamily asking prices, which showed a fourth consecutive quarter of growth, 3.88% increase from Q1, and an impressive 34.4% rise from Q2 2020,” Crexi’s report states. “Interested parties seeking multifamily property for sale on Crexi also conducted more searches, with a 13% bump in buyer activity surrounding the sector.
“Perhaps most promising of all, total transaction activity surged 16.9% in the multifamily market on Crexi, with deals happening at a faster clip than ever before. Multifamily assets are by the far the fastest-selling on Crexi, and in Q2 the average time on market shrunk to 125 days, with properties selling 16.1% faster than in Q1.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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