Q2 Market Summary - All Properties!

Q2 Market Summary

We broker the full spectrum of commercial real estate, from self-storage to land to casinos and everything in between. Here’s a breakdown of how each property type is doing:

Industrial/warehouse

‍The leading star of today’s commercial real estate market. Small-bay (<2,000 SF) has great demand. Conventional industrial deals are seeing strong buyer demand as well. Today’s users especially want clean spaces, HVAC, and fenced yards.

Retail

‍Retail (strip malls, drive-thru, STNL, etc.) is doing well, sales velocity has slowed due to construction costs and interest rates. Adequate parking, visibility, and convenient access are key. Cap rates vary widely (4 – 8%+) depending on dozens of factors.

Office

‍Older office continues to struggle; few tenants are expanding their office footprint. Newer, modern, and well-located office space appears to be doing well, especially if there is any warehouse component.

Multifamily

‍Small multifamily (2-4units) continues to hit new record sales prices. 5+ unit properties, which follow commercial lending requirements, are typically harder to sell and are reliant on current property-level income to determine values. Mobile home parks are still experiencing significant demand, with lots of capital ready.

Hospitality

‍Majority of hospitality deals seem to be struggling, with significant cap rate expansion recently. Boutique/experiential and conversion deals are still attracting buyers.

Storage

‍Exceptional demand for ‘conventional’ self-storage facilities. There is significant capital on the sidelines ready to buy storage. Cap rates vary, but typically 5.5%+.

Land

‍Vacant commercial or development land sales are struggling to transact. Owner-users seem to be still active, but new development plays are rare. Expect long sales cycles for the majority of transactions.