From: Bentley Real Estate Group
Date: November 25, 2024
Subject: CRE MARKET UPDATES - BREG Weekly Newsletter 11/25/24


Latest Stories


Home sales surged in October, just before mortgage rates jumped
In October 2024, U.S. home sales rose 3.4% to 3.96 million units annually, the first year-over-year gain since 2021. A brief dip in mortgage rates spurred activity, despite rates now at 6.78%. Inventory remains low, pushing median prices to a record $407,200, up 4% year-over-year, though high rates and limited supply still challenge buyers.

CRE Market Hits Lowest Transaction Count Since 2011
In the third quarter of 2024, the U.S. commercial real estate (CRE) market experienced a significant downturn, with transaction activity declining by 10% in deal count compared to the previous quarter. This marks the lowest transaction count since 2011. Additionally, dollar volume decreased by 6.6%, and square footage transacted fell by 3.8%. Year-over-year, the market saw a 9.9% drop in deal count, a 9.6% reduction in dollar volume, and an 11.4% decrease in square footage.

Rental Market Stabilizes as Supply and Demand Reach Equilibrium
The U.S. rental market is stabilizing as rising apartment construction, adding 1.2 million units in two years, aligns supply with demand. This has driven a 15-month rent decline to a $1,720 median, though regional disparities persist, with cities like Austin facing high vacancies while New York and Los Angeles see rent increases.

Deal of the Week


Criterion Development Partners Sells Modera Newton Multifamily In Newton MA For $114M
Modera Newton, a multifamily property located at 2 Los Angeles Street in Newton, MA, was sold for $114,000,000. The asset comprises two buildings featuring a total of 204 units, along with retail space and amenities including a fitness center and golf simulators.

Summary of transaction details:

  • Property Type: Multifamily
  • Transaction Amount: $114,000,000
  • Units: 204
  • Price Per Unit: $558,824
  • Seller: W. Pretlow Riddick - Criterion Development Partners
  • Buyer: Mill Creek Residential

Read more: https://traded.co/deals/massachusetts/multifamily/sale/2-los-angeles-street/

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