Q1 2025
US commercial real estate investment sales - pricing and pacing
Explore Q1 2025 US commercial real estate trends in pricing and pacing. Analyze transaction volumes, property values, and market performance metrics across sectors, powered by Altus Group and Reonomy.
Key highlights
The average price per square foot of transacted single properties rose by 0.1% quarter-over-quarter in Q1 2025, with increases across all sectors except industrial, which fell by 4.6%
Average price per square foot of transacted single properties increased by 2.6% year-over-year across all property sectors
Across the major property types, average price per square foot rose annually for hospitality (+14.8%), retail (+5.2%), multifamily (+3.9%), and office (+3.5%), but fell for industrial (-0.1%) and commercial general + mixed use (-0.2%)
Transaction activity, measured by the number of single property transactions, remained subdued through Q1 2025, with approximately 29,000 transactions recorded, tracking closely with the same period in 2024 and 2014
The cumulative transacted dollar amount in Q1 2025 remained historically low, as total single-property transactions reached $61.4 billion, approximately 7 percent below the same period in 2024 and the lowest level since 2014
Methodology
Sourced from the Q1 2025 US CRE Investment and Transaction Quarterly report, the following charts provide an overview of national trends in the pricing and pace of commercial property transactions, allowing for comparisons over time.
Price trends are shown using a rolling 90-day average of transacted price per square foot, with year-over-year and quarter-over-quarter comparisons for various property subtypes, offering insights into shifts in individual transaction values.
The pace of activity is represented through cumulative daily aggregates, tracking transaction count, and dollar volume transacted year-to-date since 2000. Together, these metrics capture the value and volume of market activity, reflecting reported transactions through Q1 2025 pulled as of April 15, 2025, without adjustments for unreported activity.
Transaction price per square foot
Property type | Q1 2025 | Q4 2024 | vs. Q4 2024 | Q1 2024 | vs. Q1 2024 |
|---|---|---|---|---|---|
Multifamily | $151 | $147 | 2.2% | $145 | 3.9% |
Industrial | $107 | $112 | -4.6% | $107 | -0.1% |
Manufacturing | $89 | $101 | -11.6% | $103 | -13.6% |
Other industrial | $108 | $109 | -0.9% | $103 | 4.8% |
Storage | $87 | $104 | -16.6% | $115 | -24.4% |
Warehouse and distribution | $112 | $114 | -1.8% | $108 | 4.0% |
Office | $137 | $131 | 5.1% | $133 | 3.5% |
Medical office | $211 | $211 | 0.1% | $199 | 6.2% |
Other office | $133 | $126 | 5.5% | $128 | 3.6% |
Retail | $139 | $135 | 3.2% | $132 | 5.2% |
Anchor + other big box | $109 | $110 | -1.2% | $88 | 23.2% |
Automotive | $167 | $164 | 1.4% | $160 | 4.2% |
Bars and restaurants | $192 | $181 | 5.9% | $183 | 5.0% |
Street and strip centers | $138 | $133 | 3.7% | $131 | 5.2% |
Hospitality | $160 | $151 | 5.9% | $139 | 14.8% |
Full service | $160 | $149 | 7.1% | $142 | 12.8% |
Limited service | $156 | $158 | -1.0% | $135 | 15.8% |
Commercial general and mixed use | $118 | $117 | 1.1% | $119 | -0.2% |
Commercial general / misc | $102 | $92 | 11.0% | $92 | 10.6% |
Mixed use | $133 | $140 | -4.8% | $145 | -8.4% |
Pricing by property sector
Average asset values for all but one sector, industrial, in Q1 2025. The average price per square foot of a single property multifamily transaction is still well below its Q4 2022 peak (-20.0%). Similarly, the price per square foot of a single property office transaction is down 17.0% from its Q4 2019 peak.
Pricing since Q1 2014
Source: Altus Group, Q1 2025 US Commercial Real Estate Investment and Transactions Quarterly report
Cumulative transaction volume
US CRE transaction activity remained muted in 2025 Q1. Cumulative transaction activity (#) of single-property transactions paced closely with 2014 through the first few months of 2025.
Cumulative count of properties transacted
Source: Altus Group, Q1 2025 US Commercial Real Estate Investment and Transactions Quarterly report
US CRE transaction activity remained muted in 2025 Q1. Cumulative transaction activity ($) of single-property transactions paced closely with 2014 through the first few months of 2025.
Cumulative dollar volume of properties transacted
Source: Altus Group, Q1 2025 US Commercial Real Estate Investment and Transactions Quarterly report
Explore more commercial real estate transaction activity data
National activity
Property sectors
Q1 2025
US CRE Investment & Transactions Quarterly Report
Looking for the latest data on US commercial real estate transaction activity? This quarterly report is one of the industry’s earliest and most detailed insights into national and MSA-level transaction volumes, pricing, and property-sector trends.
About the authors
Cole Perry
Associate Director of Research
Altus Group
Cole Perry is a Associate Director of Research with Altus Group's Research team. In this role, Cole delivers key insights into macroeconomics, capital markets, and the broader commercial real estate sector.
Cole boasts a rich background in Commercial Real Estate analytics with previous roles at CompStak and Brixmor Property Group. He holds dual M.S. degrees from Columbia University in Urban Planning and Real Estate Development.
Omar Eltorai
Research Director
Altus Group
Omar Eltorai is a Research Director at Altus Group. With more than a decade of experience in the industry in investment management and financing roles,
Omar's focus is on macro, capital and market trends affecting the US CRE market. Beyond regularly authoring articles and reports, his commentary and analysis has been featured in various media publications, including: Wall Street Journal, Globe Street, and Yahoo! Finance.
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