CRE gross sales quantity dropped in every of the highest 25 U.S. markets within the first half of 2023.
In some instances, there have been precipitous slumps from the identical interval a 12 months earlier – 75% in Seattle, 73% in Orlando, 72% in Charlotte, 70% in Houston, and 69% in Atlanta. In different instances, the autumn was much less extreme – 46% in San Francisco, 41% in Northern New Jersey, and 37% in Broward County, FL. “Deal quantity in every market fell at double-digit charges within the first half of the 12 months in comparison with the identical interval a 12 months earlier,” in accordance with MSCI’s Capital Traits report.
Some gross sales stood out. The $1.1 billion deal for the Port of Los Angeles Distribution Middle, which accounted for nearly one-third of the metro’s whole industrial quantity, led the nation. It contributed to the $9.2 billion whole gross sales achieved in Los Angeles – down 48% from the prior 12 months. The commercial sector accounted for 41% of exercise there whereas residences accounted for 28%.
One other landmark deal was scored in Manhattan with a partial curiosity deal for 245 Park Avenue. The sale of a 49.9% stake within the 1.7 million-square-foot workplace tower to Japanese developer Mori Belief hauled in $998 million. Gross sales of single belongings dominated in Manhattan, with 14 particular person property gross sales of greater than $100 million every. Town achieved a complete gross sales quantity of $5.45 billion – a drop of 58% from the prior 12 months – however nonetheless sufficient to land the Huge Apple in 3rd place nationally.
Dallas misplaced its front-runner standing to Los Angeles. It represented the second most energetic market with whole gross sales of $8.1 billion – 68% beneath the prior 12 months. Greater than half of gross sales quantity was attributable to residences, with one portfolio sale of 25 house belongings accounting for 10% of whole quantity. Multifamily gross sales additionally constituted greater than half of gross sales in Austin, Seattle and San Francisco.
Chicago, with gross sales of $5.3 billion, took fourth place, adopted by Atlanta with $4.96 billion.
Distressed gross sales additionally performed a task in some markets within the first half of the 12 months, particularly in Los Angeles, Houston, and Northern New Jersey.
