Economists' Outlook

Housing stats and analysis from NAR's research experts.

REALTOR® Commercial Sales Rise 11 Percent in Fourth Quarter

Mirroring broader trends, commercial transactions in REALTORS® markets registered a positive fourth quarter. On a year-over-year basis, sales increased 11 percent in the last quarter, as prices rose 4 percent. Cap rates continued compressing with a 50 basis point decline, from an average of 9.2 percent in the third quarter to 8.7 percent in the last. Multifamily properties recorded the lowest average cap rates, at 7.7 percent, followed by hotels, at 8.0 percent. Office and retail spaces posted cap rates of 8.6 percent and 8.5 percent, respectively.

The average transaction price moved from $1.3 million to $1.2 million in the fourth quarter. In a noticeable change, commercial REALTORS® reported that the most significant concern was the pricing gap between buyers and sellers. The second major concern was lack of available inventory. After several years of topping the list of concerns, financing dropped to third place, signaling a shift in market conditions.

In keeping with the upward momentum in the markets, REALTORS® rated the direction of commercial business opportunities 5.0 percent higher compared with the third quarter.

For the full report along with respondent comments, please visit

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.