Commercial real estate investment has revealed a mixed picture for the second quarter of 2025, with overall transaction volumes climbing even as the number of deals declined, according to data from Altus Group.
Altus reported that aggregate dollar volume for non-distressed sales exceeding $100,000 and multi-property transactions above $300,000 reached $115 billion in the second quarter, a 3.8% increase from the same period a year earlier. The growth was driven largely by multifamily and office properties, which together accounted for 44.1% of the year-over-year gains. Multifamily deals surged 39.5% from Q2 2024, while office transactions rose 11.8% over that period.
The findings are based on national aggregates that Altus adjusts after each reporting quarter. The firm uses what it calls “typical data infill,” an approach similar to seasonal adjustments economists use to better capture underlying market trends.
Prices continued to climb across most property sectors. The median price per square foot for single-property transactions, which can be more accurately tracked than multi-property sales, rose 5% from the previous quarter and 13.9% from a year earlier.
By sector, multifamily prices increased 4% quarter-over-quarter, moving from $142 to $148 per square foot, and were up 19% compared with $125 a year earlier. Industrial properties gained 4% from $101 to $108, while office rose 3% over the first quarter to $137, up 15% from $118 in Q2 2024. Retail posted one of the strongest jumps at 10% from the prior quarter and 18% year-over-year, while hospitality rose 7% sequentially and 6% annually. The only sector to decline was commercial general and mixed-use, which fell 2% from Q1 to Q2 but was still 17% higher than the same quarter last year.
Despite rising prices and dollar volumes, transaction counts continued to fall. Altus reported 41,463 deals in Q2 2025, down 7.4% from the prior year. Nearly every sector saw declines: multifamily fell 9.2% year-over-year, industrial was down 6.7%, office decreased 5.2%, retail declined 8.3%, hospitality slipped 6.6% and commercial general and mixed-use dropped 5.6%.
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