Headline sales volume across major asset classes has tumbled 12% year-over-year in May, following generally positive reads over the past 12 months. However, April figures were also initially down but were revised upward to a 14% gain. This suggests May figures may not be as bleak when the dust settles, said Aaron Jodka, research director for U.S capital markets at Colliers.
Office was the only asset class to post annual sales volume gains in May, with volume up 41% year-over-year to $5.1 billion, according to Colliers’ May MSCI update. This marked the tenth increase in the past 11 months and was the strongest performance of any asset class. The largest office deal of the month was Blackstone’s partial interest acquisition of 1345 Avenue of the Americas in Manhattan, which valued the asset at $1.4 billion.
“This trade could signal a shift in private equity and institutional interest in the asset class,” said Jodka. “Meanwhile, occupiers are finding value and acquiring assets, including NVIDIA.”
Meanwhile, other asset classes did not follow the strong sales trends seen in office. For example, retail volume was down 7% to $3.6 billion, which is well within the range of revisions, suggesting the number will likely be flat to slightly positive once the data stabilizes, said Jodka. Borough Developers’ acquisition of the leasehold of 673-695 Fulton Street in Brooklyn for $139 million and Hendricks Commercial Properties’ purchase of The Henry at Fritz Farm in Lexington, Kentucky, for $137 million, topped the market in May.
All other segments had sales volumes below the overall average, including multifamily down 18% to $8.2 billion, industrial down 26% to $6.2 billion and hospitality also down 26% to $1.8 billion.
Multifamily remains the leader in volume despite sales pulling back. The top three deals in May were all multi-property sales. Essex Property Trust acquired two assets with 420 units for $240.5 million in California; Sobrato Development purchased two properties with 273 units for $193 million; and a joint venture of PH Realty Capital and Rockledge Investments acquired a 34-property portfolio with 2,025 units in the Bronx for $192.5 million.
Slower industrial sales volume marked the second consecutive month of reduced activity after 11 of the prior 12 months had been flat or positive, said Jodka. Portfolio activity has been subdued for much of 2025, although a couple of smaller deals took place in May. Hines Global Income Trust acquired three properties totaling nearly 2.5 million square feet, while NorthPoint Development acquired three buildings in Las Vegas, according to the report.
Although hospitality sales were down year-over-year, on a month-to-month basis, sales were up 37% as more assets and rooms traded. Notable transactions included Blackstone’s acquisition of the 292-room Eventi in Manhattan for $175 million, equaling nearly $600,000 per room. Meanwhile, the 140-room Stanley Hotel in Estes Park, Colorado, and the 284-room Hotel Bossert in Brooklyn traded for $127 million and $100 million, respectively, said the report.
Jodka said property trades have been limited, running well below the five and 10-year average.
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