Commercial Property Sales Increased by Double Digits in Q1

Sales of commercial properties in the United States ticked up by double digits year-over-year in the first quarter, according to the latest edition of Real Capital Analytics’ US Capital Trends.

Deal flow across all asset classes increased overall by 56% in Q1 over the same period a year ago and pushed up 47% in March over prior year totals, the report shows. Individual asset sales increased at 58% year over year in Q1, slightly outpacing the overall market, while entity-level deals totaled $11.8 billion.

The deal flow is appearing to continue apace despite the rising inflationary pressures and mounting geopolitical tensions that have been on the lips of most industry insiders over the last few months.

But “closing a commercial property transaction is a process measured in months and weeks however, so the activity through the end of March likely reflects sentiment from the start of the year,” RCA’s Jim Costello notes. “The fallout from recent uncertainty, if any, would likely be seen in the coming months.”

Retail was a strong winner in the first quarter, with deal volume increasing 102% in Q1 2022 year over year and by 70% year over year in March.  Hotel deal flow increased by 71% year over year in the first quarter and by 12% in March, while apartment transaction activity increased by 64% in March year over year and by 56% in Q1 2022 versus Q1 2021. Sales activity for office properties ticked up 59% over a year prior as of the first quarter and activity in March 2022 increased 32% over prior year levels.Meanwhile, seniors housing posted a 27% decrease in deal volume year over year in March and a 48% decline year-over-year in the first quarter.