Q2 CRE Transaction Volume Rises Driven by Larger Deals
Altus Group reported a significant increase in Q2 commercial real estate (CRE) transaction volume, with dollar value rising 11% quarter over quarter and up 16.3% year over year on a trailing four-quarter basis. The NCREIF ODCE index showed property-level returns of 1.3%, driven mainly by income rather than appreciation. Larger transactions are fueling the recovery in CRE activity, while deal counts grew modestly compared to previous quarters. Sector performance varied significantly: multifamily valuations held up better despite losing transaction share, and storage saw a notable price increase of 24% year over year. Office values remained flat but larger office properties began trading again after hitting lows in early 2024. Geography also played a role, with San Francisco showing improved momentum due to AI activity while Southern California industrial markets struggled. The data highlights diverging trends across sectors and regions, emphasizing that asset quality and location are key factors influencing CRE performance.
Topics: Altus Group report CRE transactions NCREIF ODCE valuation index