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Crexi Sees “Modest” Increase in Asking Prices, Further Cap Rate Compression
Asking prices on Crexi rose a modest 2.2% in September amid shifting economic conditions. The same period saw cap rates compress to below 6% for the first time since June, indicating a rise in demand overall in the commercial real estate sector.
“Buyers could be clamoring to get ahead of the Fed’s projected interest rate hike towards the end of this year or taking advantage of the 1031’s tax benefits,” reported Los Angeles-based Crexi. “At the same time, capital is looking to the real estate sector as a buffer against inflation to procure a historically more secure investment amid volatile market conditions.”
On Crexi, industrial properties reported the most noticeable pricing gains in September, up 5.4% in price per square foot from the previous month. Interestingly, the number of unpriced listings experienced a significant jump, with 20% of new assets added last month listed without a price tag.
- ◦Sale/Acquisition
