“Following record-breaking commercial sales production in Q2, deal volume returned to more typical levels in Q3, as interest rate hikes began to create pricing friction in the South Coast market. Nevertheless, 2022 is already a banner year for sales.”
Some Q3 Highlights:
- Commercial sales activity decelerated in Q3, but is still on pace for record transactions and dollar volume for the year.
- Rising interest rates, along with other economic factors, are complicating underwriting and
- increasing pricing friction in the sales market.
- As office tenants grapple with remote work, inventory has been expanding, met by modest demand and leasing activity. Gross absorption is down 36% compared to the 5-year average.
- Retail leasing has kept pace with recent historical levels, and average rents have seen a modest increase.
- Strong industrial leasing has produced YTD dollar consideration twice the prior 5-year average.
For your copy of Hayes Commercial Group’s Market Report or to discuss your portfolio planning for 2022, email liam@hayescommercial.com
Commercial Real Estate Insights 