Commercial Real Estate Dealmaking Slows in November
- The commercial real estate market continued to cool in November,marking the second straight month of declining transaction volume.
- October saw the frist year-over-year drop in transaction volume since the market began recovering from Federal Reserve rate hikes in early 2024. However,November's figures fell even further,dipping below...
- Analysts attribute the slowdown to a confluence of factors, including sustained high interest rates, policy uncertainty, and a fragile labor market.
Commercial Real Estate Transaction Volume Declines for Second Consecutive Month
The commercial real estate market continued to cool in November,marking the second straight month of declining transaction volume. Just 1,800 deals closed across the U.S. in core segments – multifamily, office, industrial, retail, and hotel – representing a 10% decrease compared to November 2024, according to exclusive data provided to CNBC’s Property Play by Moody’s.
October saw the frist year-over-year drop in transaction volume since the market began recovering from Federal Reserve rate hikes in early 2024. However,November’s figures fell even further,dipping below the transaction levels recorded in November 2020,the initial year of the COVID-19 pandemic.
Analysts attribute the slowdown to a confluence of factors, including sustained high interest rates, policy uncertainty, and a fragile labor market.
A version of this article first appeared in the CNBC Property Play newsletter with Diana olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.