Search
 

CRE Deal Volume Rebounds as Price Declines Stabilize

The fourth quarter was exceptionally healthy, with deal volume increasing 32%.

By Kristen Smithberg | February 03, 2025 at 06:21 AM

With deal volume climbing for the first time in several years and price declines slowing, the commercial property markets turned a corner last year. Every deal structure contributed to this positive trend, although pockets of weakness remain, according to MSCI’s 2024 capital markets report.

The commercial property markets have suffered two related shocks during the past five years. The first was the COVID-19 pandemic, which created uncertainty and diminished tenant demand. Then a sharp decline in commercial property prices started in 2022 as the positive effects of stimulus spending and low interest rates began to wane. Through much of 2024, those declines moderated, MSCI said. The fourth quarter was particularly healthy, with deal volume increasing 32% year-over-year to close at $130.6 billion. However, that remained lower than an average pre-pandemic quarter when volume averaged $161.9 billion.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.