The third quarter saw a bounce back in commercial property sales from the big declines of the second quarter. Unfortunately, that hasn’t translated into a clear direction on pricing.
High-quality assets traded well, while the most-challenged properties remain off the market, according to Robb Calhoun, a CoStar managing director and senior economist, in a new video report on the capital markets.
Deals for the third quarter totaled about $80 billion, up more than 50% from the second quarter. Even so, it’s still down more than 40% from the pre-pandemic third quarter of 2019.
Office deals were off the most as that property type faces some hard-to-answer questions about the timing of future demand, including how the widespread pandemic adoption of working from home will play out.
Industrial sector properties are getting a significant boost with a rise in e-commerce spending and a corresponding demand for space. The sector set a record for new leases signed in the quarter.