Industrial Notched Biggest Pricing Gains in September, According to This Index

Industrial properties notched the biggest pricing gains in September among Crexi users — but also posted a noticeable increase in unpriced listings, reflecting the overall uncertainty and repricing trends in the broader commercial real estate market.

Industrial pricing on Crexi’s platform ticked up 5.4% in price per square foot in September, while 20% of new assets added last month to the platform lacked a price tag. Industrial also posted higher leasing rates month over month in September as well, with average monthly rates per square foot rising just shy of 2%.

“This increase in unpriced listings corresponds with sellers’ awareness of industrial’s continued success while accepting how changing market conditions’ are impacting buyer sentiment,” Crexi analysts note in a report breaking down the September data. “Brokers may think moving the pricing conversation later in negotiations can better help navigate deals to the finish line, which it can in many cases.”

Overall leasing rates among Crexi’s users slowed in September after jumping 3% in August, with industrial and special purpose property up 4.3% and retail and office declining by 2.3%.  In addition, new inventory added to Crexi in September jumping by 24%. And search activity ticked up as well, especially in Sun Belt cities, which analysts say likely coincides with a desire to finalize deals ahead of further rate gains.

Houston saw a nearly 30% increase in for-sale searches and a similar gain among tenants seeking space, while Dallas and San Antonio had for-sale search increases of 28% and 29%.