Property Sales Decline Again as Retail Gains Momentum

Property sales volume fell to $26.5B in July, marking the second consecutive monthly decline across most asset classes.
Retail sales rose 22% year-over-year to $4.4B, with price growth of 4.2%, making it the strongest performing sector.
Multifamily saw modest gains, while office, industrial, and hospitality sales volumes all declined, with hospitality posting the sharpest drop at 52%.

Key Takeaways

The Big Picture

According to Globe St, commercial property sales slowed for the second month in a row, with Colliers reporting a 10% year-over-year decline in July. While most major asset classes saw pullbacks, retail proved the exception, posting double-digit gains.

Retail Leads the Way

Retail notched $4.4B in sales, a 22% year-over-year increase. Pricing also rose by 4.2%. Both single-asset and portfolio transactions gained momentum, highlighted by Federal Realty’s $289M purchase of two Kansas properties, Brixmor’s $223M acquisition in Houston, and active dealmaking from Regency Centers and CBL.

Multifamily Sees Modest Growth

The sector was marginally positive at 1%, totaling $10.6B in transactions. Portfolio activity rose 11%, signaling improving confidence. Key deals included:

Fairfield Residential’s $462.4M purchase of nearly 1,600 units in metro Phoenix.
A $345M partial interest transfer of 180 Water in New York, a former office property.

Office Transactions Slide

Sales volume dropped 16% year-over-year to $3.8B, ending a yearlong streak of gains. CBD transactions fell sharply (down 44%), though single-asset deals increased slightly (up 2%).

The standout trade was Cousins Properties’ purchase of The Link at Uptown in Dallas, at $747 PSF, among the priciest office deals recorded in the city.

Industrial Activity Slows

Sales totaled $6.7B, down 22% year-over-year. Both single-asset and portfolio transactions declined, but pricing continued to climb.

Crow Holdings sold 6M SF to Blackstone for $718M, retaining a minority interest.
Mapletree offloaded two portfolios totaling 3.7M SF for $569M.

Hospitality Faces Sharp Decline

The sector suffered the steepest pullback, with sales volume plunging 52% to $1B. Despite pricing rising 2.4%, activity was driven by smaller transactions.

The most notable was the $82M sale of The Belmond El Encanto and Garden Villas in Santa Barbara, trading at $900,000 per key.

Data Centers Record Growth

Beyond the core sectors, data centers recorded $1.3B in sales, according to Colliers.

Why It Matters

The slowdown highlights continued uncertainty across commercial real estate, with investors showing caution outside of retail and select multifamily deals. Retail’s resilience suggests consumer-driven assets remain attractive, while office and hospitality continue to face structural challenges.