The real estate market kicked off the new year with a complex landscape, revealing both challenges and opportunities across various sectors, according to a Colliers’ analysis of MSCI data. January's data paints a picture of shifting dynamics, with some segments experiencing growth while others face headwinds.

The aggregate sales volume in January saw a 14% decline compared to the same period last year, primarily due to a significant 42% drop in portfolio and entity deals. However, this downturn was not uniform across all transaction types, as single-asset transactions managed a slight 1% increase. The market also witnessed fewer than 1,800 assets changing hands, matching the lowest monthly total of the previous year.

Despite the overall decline, certain sectors showed remarkable resilience and even growth. The office sector led the charge with an impressive 80% increase in volume, followed by hospitality at 26%, and multifamily at 9%.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.