Altus Group: Multifamily Leads Single-Property Transactions

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Altus Group, Toronto, released its Q1 CRE Investment and Transactions Quarterly Report, finding that multifamily led all sectors by share of single-property transaction value (29.2%) and by share of properties tracked (29.6%).

Next in terms of properties tracked were retail (23.3%) and office (16.7%).

Industrial accounted for 22.4% of transaction value but only 14.8% of properties tracked. Commercial general/mixed use was 13.8% of properties tracked and hospitality was 1.9%.

The share of transaction value from deals above $10 million hit 50.5% in Q1–the third consecutive quarter above 50%. That’s also up 3.9 percentage points year-over-year and up significantly from the recent low of 42.3% in Q2 2023. Transactions between $1 million and $10 million were 38.6% of single-property transaction value and those below $1 million were 11%.

The median age of transacted properties varied widely by sector, the report found, with 61 years old for multifamily, 54 for general commercial, 41 for industrial, 41 for retail, 39 for office and 36 for hospitality.

Median price per square foot hit records across all sectors except hospitality. On average across all sectors, it grew 1.4% quarterly and 8.7% annually. Industrial was up 11.8% and retail was up 10.4%.

Since Q4 2019, the industrial median price per square foot is up 88.5%. Office has grown just 36.6% during that period.

Median square foot of transacted properties is improving from 2024 lows. Office was up 4.8%, but multifamily was up just 0.3%.