Crexi Report Finds Surge in New Industrial Properties
In turn, its August numbers showed a 2% dip in asking prices; restaurants fared better.
A surge of new industrial property hit the market in August, causing a slight dip in month-over-month asking prices of 2%, according to the Crexi National Commercial Real Estate Report: August 2022, issued last week.
It was one of several key trends the report offered, including a 10% increase in warehouses for sale compared to July, a 19% jump in general industrial property, and a 17% increase in flex industrial space for sale.
As demand rises to meet the newly available supply, we’ll likely see prices adjust and climb again next month, Crexi said in a release.
Overall, CRE Prices Dip 2.6% Month Over Month
There was a 2.6% month-over-month listing price dip in August overall when combining all product types (office, industrial, retail, multifamily).
Lease asking rate growth of 4% in restaurants was primarily driven by Class A listings “indicating that dining’s recent successes” were on landlords’ minds.
Experiential retail and other special-purpose listings’ asking rents were up 6%.
Office for sale listing prices fell 4.5% compared to the previous month, representing a second consecutive month of declines after reaching their all-time highs in June, according to the report.
Industrial RE Thriving in Miami
Industrial real estate in areas such as Miami-Dade County is thriving, Globe.St.com reported last month.
According to the Midyear 2022 Miami Industrial Market report by Marcus & Millichap, the rise in construction will have a minimum impact on vacancy.
There, they expect to continue to see a large amount of net in-migration in its metro areas as tax laws and the warm climate draws people in.
A larger population raises the demand for essential goods which will require retailers to maintain or expand both their distribution and warehouse footprints.