Industrial Sees Biggest Price Gains
Crexi, a popular listing website among brokers, investors, landlords and tenants, the price per square foot for industrial pricing increased by 5.4% in September.
According to Crexi users, industrial properties saw the highest price increases in September. However, there was also a noteworthy rise in the number of unpriced listings, which reflects the general uncertainty and repricing patterns in the larger commercial real estate market.
In September, the price per square foot for industrial properties on Crexi’s platform increased by 5.4%, while 20% of the new assets that were added to the site last month had no price listed. September saw an increase in industrial lease rates month over month as well, with average monthly rates per square foot climbing by slightly under 2%.
In a research analyzing the September data, Crexi analysts write, “This surge in unpriced listings aligns with sellers’ understanding of industrial’s sustained success while accepting how shifting market conditions are hurting buyer attitude.” Brokers may believe that delaying the discussion of pricing until later in the negotiation process will enable them to more successfully steer agreements to completion, which is often the case.
Following a 3% increase in August, customers of Crexi saw a slowdown in leasing rates in September, with industrial and special-use property leasing rates rising by 4.3% and retail and office leasing rates falling by 2.3%. Additionally, new merchandise added to Crexi increased by 24% in September. Additionally, search activity increased, particularly in Sun Belt locations, which analysts believe is related to a desire to close deals before further rate increases.
Dallas and San Antonio both witnessed for-sale search increases of 28% and 29%, while Houston had a gain of nearly 30% among tenants looking for space.
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