There’s more evidence that CRE markets are regaining stability, according to Crexi’s National Commercial Real Estate Report. If that continues, strategic planning for owners, investors, and developers will become easier and more reliable.
Asking prices are settling down, either staying flat or gaining or losing only a little between January and February. Cap rates are flat, month-over-month, across multiple property types. Leasing has also remained steady. However, some property types face market challenges in sales, leasing, or cap rate.
Retail saw a “slight decrease” from January to February, at $261.19 per square foot. The most recent high of $280.24 was in July 2024, so the pattern looks like it’s leveling off. Cap rates at 6.55% were steady between January and February, so investors perceive the asset category as steady in risk and, given cap rate changes, as the least risky asset type. The reason is likely that the category has “demonstrated resilience, with stable occupancy rates and modest growth in lease rates.” There may be trouble soon because of the Trump administration’s tariff strategy, which could lead to slower consumer spending.
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