Investor activity in the commercial real estate sector is showing mixed signals, raising important questions about the industry’s near-term outlook. According to Colliers’ analysis of MSCI’s April CRE sales data, total investment in major asset classes—office, industrial, multifamily, retail, and hospitality—reached $22 billion. This figure represents a 5% decline compared to the same period in 2024, with prices slipping by 1%. While these numbers point to a cooling market, Colliers anticipates that as delayed data is reconciled, final sales volumes may edge up slightly, extending a modest growth trend that has persisted for six months.
Meanwhile, the multifamily sector continued to lead the market, attracting $9.2 billion in April. This marks a robust 20% increase in volume year-over-year, although it was down 1% from the previous month. Notably, this is the eleventh straight month of year-over-year volume gains for multifamily, with a remarkable 41% growth over the past year. The surge was fueled primarily by large portfolio sales, even as single-asset transactions dipped slightly. Among the headline deals, This includes PCCP acquiring an 81-property, 1,808-unit Bay Area portfolio from Veritas Investments and Ivanhoe Cambridge for $540.5 million. Additionally, Trilogy Real Estate Group sold 11 properties totaling 3,054 units to Morgan Properties for $501 million, alongside other significant transactions in Plano, Santa Ana, Chicago, and Wood Ridge.
Industrial assets saw the second-highest investment, with $4.5 billion in sales. However, this represented a steep 34% drop from April 2024, even as the sector posted a 14% increase over the trailing 12 months. Prices held steady, but portfolio sales activity was notably soft, down 61% for the month. The largest transaction was W.P. Carey REIT’s $140.3 million purchase of UNFI Santa Fe in California. Blackstone also made moves, selling portfolios in Florida and Nevada.
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The office sector posted $3.9 billion in volume, a 15% year-over-year increase. Prices remained flat month-over-month, but Colliers observed that investors are “coming off the sidelines” to re-engage with the market. The standout deal was Synergy’s $227 million acquisition of 99 High Street in Boston, with other major trades in cities including Plano, Washington, D.C., Culver City, San Francisco, Fort Mill, Los Angeles, and Manhattan.
Retail properties brought in $3.2 billion, up 6% year-over-year and 4% from the previous month. This marks the third consecutive month of annual sales gains and the eighth in the past year. Despite this, trading remains sluggish, with only 321 retail assets changing hands—the lowest monthly figure since the pandemic. The largest deal was the $271.3 million sale of Legacy West in Plano, Texas, while Ralph Lauren made headlines with a $132 million purchase on Manhattan’s Prince Street.
Hospitality lagged behind, with just $1.1 billion in volume, a sharp 52% decline year-over-year, with prices down 5%. This ended a four-month streak of annual volume growth for the sector. Notable transactions included Terra Group and Fortune International’s $205 million acquisition of the Silver Sands Beach Resort in Florida, which is slated for redevelopment and Sixth Street Partners’ purchase of the Fairmont Dallas for $111 million.
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