Q3 2024 - Published November 2024
US commercial real estate investment sales - pricing and pacing
Explore Q3 2024 US commercial real estate trends in pricing and pacing. Analyze transaction volumes, property values, and market performance metrics across sectors, powered by Altus Group and Reonomy.
Overview
Sourced from the Q3 2024 US CRE Investment and Transaction Quarterly report, the following charts provide an overview of national trends in the pricing and pace of commercial property transactions, allowing for comparisons over time.
Price trends are shown using a rolling 90-day average of transacted price per square foot, with year-over-year and quarter-over-quarter comparisons for various property subtypes, offering insights into shifts in individual transaction values.
The pace of activity is represented through cumulative daily aggregates, tracking transaction count, dollar volume, and total square footage transacted year-to-date since 2000. Together, these metrics capture the value and volume of market activity, reflecting reported transactions through Q3 2024 pulled as of October 15, without adjustments for unreported activity.
Key highlights
The average price per square foot of transacted properties rose by 1.2% quarter-over-quarter in Q3 2024, with increases across all sectors except hospitality, which fell by 2.6%.
Average price per square foot of transacted properties fell by 1.6% year-over-year across all property sectors.
Across the major property types, average price per square foot rose for industrial (+6.6%), office (+3.5%), commercial general + mixed use (+0.1%), but fell for retail (-0.3%), hospitality (-0.4%), and multifamily (-8.7%).
Year-to-date cumulative transaction volume remains low; the number of properties transacted is at its lowest since 2011, transaction dollar volume is at its lowest since 2013, and square footage transacted is at its lowest since 2010.
Transaction price per square foot
Property type | 2024 Q3 | 2024 Q2 | vs. 2024 Q2 | 2023 Q3 | vs. 2023 Q3 |
|---|---|---|---|---|---|
Multifamily | $157.78 | $155.86 | 1.2% | $172.86 | -8.7% |
Industrial | $111.63 | $110.53 | 1.0% | $104.74 | 6.6% |
Manufacturing | $108.81 | $102.38 | 6.3% | $101.40 | 7.3% |
Other industrial | $101.83 | $100.78 | 1.0% | $98.74 | 3.1% |
Storage | $110.33 | $114.43 | -3.6% | $100.44 | 9.8% |
Warehouse and distribution | $117.96 | $115.49 | 2.1% | $109.66 | 7.6% |
Office | $140.28 | $135.93 | 3.2% | $135.52 | 3.5% |
Medical office | $199.00 | $198.56 | 0.2% | $211.44 | -5.9% |
Other office | $136.61 | $131.65 | 3.8% | $129.40 | 5.6% |
Retail | $135.67 | $133.65 | 1.5% | $136.05 | -0.3% |
Anchor + other big box | $89.33 | $89.70 | -0.4% | $88.17 | 1.3% |
Automotive | $160.05 | $154.10 | 3.9% | $166.63 | -4.0% |
Bars and restaurants | $192.94 | $209.08 | -7.7% | $206.24 | -6.4% |
Street and strip centers | $136.17 | $132.86 | 2.5% | $134.29 | 1.4% |
Hospitality | $147.53 | $151.51 | -2.6% | $148.09 | -0.4% |
Full service | $147.78 | $152.78 | -3.3% | $155.11 | -4.7% |
Limited service | $152.60 | $149.94 | 1.8% | $131.08 | 16.4% |
Commercial general and mixed use | $119.24 | $117.24 | 1.7% | $119.15 | 0.1% |
Commercial general / misc | $93.30 | $96.92 | -3.7% | $103.96 | -10.3% |
Mixed use | $144.76 | $134.71 | 7.5% | $132.12 | 9.6% |
Pricing by property sector
Asset values (tracked by 90-day moving average) for most sectors ticked up in Q3 2024. However, the average price per square foot of a single property multifamily transaction is still well below its Q4 2022 peak (-18.4%). Similarly, the price per square foot of a single property office transaction is down 15.5% from its Q1 2020 peak.
Pricing since Q1 2014
Source: Altus Group, Q3 2024 US Commercial Real Estate Investment and Transactions Quarterly report
Cumulative transaction volume
US CRE transaction volume continued to slide through Q3 2024. Cumulative transaction volume through Q3 2024 was the lowest level of volume (#) since 2011.
Cumulative count of properties transacted
Source: Altus Group
US CRE transaction volume continued to slide through Q3 2024. Cumulative transaction volume through Q3 2024 was the lowest level of volume ($) since 2013.
Cumulative dollar volume of properties transacted
Source: Altus Group, Q3 2024 US Commercial Real Estate Investment and Transactions Quarterly report
US CRE transaction volume continued to slide through Q3 2024. Cumulative transaction volume through Q3 2024 was the lowest level of volume (SF) since 2010.
Cumulative square feet of properties transacted
Source: Altus Group
Explore more commercial real estate transaction activity data
Q3 2024
US CRE Investment & Transactions Quarterly Report
Looking for the latest data on US commercial real estate transaction activity? This quarterly report is one of the industry’s earliest and most detailed insights into national and MSA-level transaction volumes, pricing, and property-sector trends.
About the authors
Cole Perry
Associate Director of Research
Altus Group
Cole Perry is a Associate Director of Research with Altus Group's Research team. In this role, Cole delivers key insights into macroeconomics, capital markets, and the broader commercial real estate sector.
Cole boasts a rich background in Commercial Real Estate analytics with previous roles at CompStak and Brixmor Property Group. He holds dual M.S. degrees from Columbia University in Urban Planning and Real Estate Development.
Omar Eltorai
Research Director
Altus Group
Omar Eltorai is a Research Director at Altus Group. With more than a decade of experience in the industry in investment management and financing roles,
Omar's focus is on macro, capital and market trends affecting the US CRE market. Beyond regularly authoring articles and reports, his commentary and analysis has been featured in various media publications, including: Wall Street Journal, Globe Street, and Yahoo! Finance.
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Nov 28, 2024