CRE Transactions Stall Below Pre-COVID Levels: Property Play Report

Commercial Real Estate Deal Report

• 📊 The latest CNBC Property Play deal report, featuring data from Moody's, indicates that commercial real estate transactions have stalled significantly below pre-COVID levels as of the third quarter.
• 📈 The overall dollar volume of transactions has grown by only 5% from last year, highlighting a slowdown in deal-making.

Flight to Quality in September

• 🔑 September saw a notable "flight to quality" in the market, with the average dollar size of sales increasing to $12.7 million from a two-year average of $11.2 million.
• 💰 Of the top 50 deals tracked, 29 were valued at over $100 million, and the volume of these larger deals increased by 35% year-over-year, while smaller deal volumes remained flat or declined.

Sector-Specific Trends

• 🏢 In the office sector, major tech companies like Apple and Nvidia made significant purchases, with MetLife securing a nearly 39% discount on an office property, indicating potential opportunities for cash-rich companies to acquire assets cheaply.
• 🏨 The hotel sector is experiencing economic uncertainty, leading to a pullback in transactions, while open-air retail shows signs of recovery.

Property Play Newsletter

• 📰 More in-depth details on these trends, including data on top CRE property sales across the US, are available in the new Property Play newsletter, which includes exclusive monthly data from Moody's.
• 💻 Readers can access the report by visiting cnbc.com/propyplay or using the provided QR code.