- CRE sales fell 5% YoY in April to $22B, with pricing down 1% amid weaker investor demand.
- Multifamily led with $9.2B in sales, up 20% YoY, driven by major portfolio transactions.
- Industrial and hospitality sectors slumped, down 34% and 52% YoY, respectively.
- Office and retail showed modest gains, signaling selective investor re-engagement.
April’s CRE Market Snapshot
Investor sentiment in commercial real estate cooled slightly in April, with overall sales across major sectors—office, industrial, multifamily, retail, and hospitality—falling to $22B, reports GlobeSt. That marks a 5% year-over-year decline and a 1% dip in pricing, raising questions about whether recent momentum can be sustained. While final figures may rise slightly as delayed data is reconciled, April reflects a pause in what had been a modest growth trend.
Multifamily Continues To Outperform
Multifamily again led the market, posting $9.2B in volume—a 20% jump from April 2024 and the eleventh consecutive month of annual growth. Though down 1% from March, the sector has grown 41% over the past year, driven primarily by portfolio sales. Key transactions included:
- PCCP’s $540.5B acquisition of an 81-property, 1,808-unit Bay Area portfolio from Veritas and Ivanhoe Cambridge.
- Morgan Properties’ $501M purchase of 11 assets from Trilogy Real Estate Group, totaling 3,054 units.
Additional notable trades occurred in Plano, Santa Ana, Chicago, and Wood Ridge.
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Industrial Slows Despite Long-Term Growth
With $4.5B in sales, industrial was the second-highest sector in terms of volume—but posted a steep 34% drop year-over-year. While 12-month trailing figures show 14% growth, April was hampered by weak portfolio activity, down 61% from the same period last year. Standout deals included:
- W.P. Carey REIT’s $140.3M acquisition of UNFI Santa Fe in California.
Blackstone’s sales of industrial assets in Florida and Nevada.
Office Investors Re-Engage
The office sector saw $3.9B in April sales, up 15% from the previous year. Although prices remained flat, investor confidence appeared to be improving. Colliers noted a trend of capital returning to the space. Notable transactions included:
- Synergy’s $227M purchase of 99 High Street in Boston.
- Additional deals in Washington, DC, Culver City, San Francisco, Fort Mill, Los Angeles, and Manhattan.
Retail Gains, But Activity Lags
Retail posted its third consecutive month of annual growth, with $3.2B in April sales, up 6% YoY and 4% from March. However, only 321 assets traded hands—marking the lowest monthly deal count since the pandemic began. Major transactions included:
- The $271.3M sale of Legacy West in Plano, Texas.
- Ralph Lauren’s $132M purchase on Manhattan’s Prince Street.
Hospitality Stumbles After Growth Streak
Hospitality was the weakest performing sector in April, logging just $1.1B in transactions—a 52% YoY decline. The drop ended a four-month growth streak and coincided with a 5% fall in pricing. Noteworthy deals included:
- Terra Group and Fortune International’s $205M acquisition of the Silver Sands Beach Resort in Florida, planned for redevelopment.
- Sixth Street Partners’ $111M purchase of the Fairmont Dallas.
Outlook: Cautious Optimism
Despite April’s cooling in overall sales, multifamily’s continued strength and the re-emergence of interest in the office sector suggest investors are selectively engaging with opportunities. As economic uncertainty persists and delayed data is factored in, the market may find a more stable footing in the months ahead.
