Commercial real estate activity -- as measured by asking price and occupancy – showed notable gains last month across all asset classes but one, according to Crexi.
Los Angeles-based Crexi (Commercial Real Estate Exchange Inc.) launched in 2015 and says it now has millions of users using the platform to buy, sell, and lease more than 500,000 commercial listings worth more than $1 trillion.
Crexi said in its September report that overall asking prices had recovered from a midsummer 3Q slump, led by the industrial segment, which saw a 4.16% jump in asking price per square foot from August to September. Multifamily, retail, and office space saw rises of 3.80%, 3.79%, and 2.00%, respectively, during the month. The average asking price for land, meanwhile, fell 28.02% from month to month.
Crexi said overall prices ended the month just 1.48% shy of 2Q highs, although slightly fewer assets came online in September than in July and August.
Meanwhile, occupancy rose again in September, marking the third straight month of growth in that metric and reaching 84.05% across all segments.
"This growth shows promising returns of tenant absorption across asset classes, despite potential uncertainty in the office sector due to Delta variant-related concerns," the Crexi report says.
Co-working and e-commerce assets see notable surges in listings and occupancy
Although the office asset class saw only a 2% gain in average asking prices, that’s in a segment hit by a slower-than-expected return to the office caused by the coronavirus surge this summer. Average occupancy of those available spaces also was up 5%.
Within the office segment, co-working showed a notable jump, with 12.3% more spaces listed on Crexi in September than August, the report says, "as smaller offices become a more viable option for a slow return to in-person work."
The bump in asking prices for retail space also is a positive sign, "indicating returning confidence in the sector and hinting at a surge of demand ahead of the holiday shopping season," according to the report.
Speaking of holiday shopping, the report says that as tenants surge to snap up available warehouse and logistics space ahead of the holiday-driven e-commerce rush, industrial space occupancy levels showed “a remarkable jump” to 81.49% (from 75.31% in August).
The Millionacres bottom line
While the Crexi report itself puts more numbers to what retail investors are seeing in these various segments, it’s also interesting to look at CREXI’s listings themselves. Just the first page or two has properties ranging from a 351-acre planned office and industrial complex in Las Vegas for $155.5 million to $119,900 for a rented duplex in Hartford, Indiana. There are also stores, hotels, and raw land in there for your window-shopping consideration or more serious pursuit.