[IRVINE, Calif., August 8, 2024]—LightBox, a leading provider of commercial real estate (CRE) information and technology, released its Monthly CRE Activity Index for July, reflecting little change, despite broad economic volatility.
The LightBox Monthly CRE Activity Index provides an aggregate view of the market with information on property listings, due diligence, and valuation activity enabling market participants to identify inflection points in CRE activity. July’s aggregate index came in at 92.4 showing little change from June’s 92.3 reading, but a pronounced increase from the July 2023 reading of 81.4.
According to the report commentary, the latest improvement in the CRE Activity Index supports anecdotal evidence that the momentum that first took root in early 2024 continues despite recent disappointing data on job growth, unemployment, and wages.
July brought encouraging signs of more portfolios changing hands, a healthy influx of bidders on individual property listings, and a new round of sales across asset classes and geographies. An analysis of the LightBox data on nondisclosure agreements (NDAs) by asset class revealed that buyer interest in listings for multifamily and retail are above the national average across all property types. As dealmaking builds steam, it brings more clarity to pricing and sends a powerful message to the market that prices are not likely to fall much more.
“We saw high volatility in the market in July, yet the CRE market continued to soldier on. Lenders are lending. Sales are taking place,” observed Manus Clancy, LightBox head of Data Strategy. “As we’ve discussed in our recent CRE Weekly Digest podcast, the market is looking past volatility to focus on closing the deals that make sense. The silver lining for the CRE market is that falling Treasury yields should support strong asset prices,” Clancy said.
The ability of CRE to exhibit resilience amid a disappointing round of market indicators and significant uncertainty is encouraging for the near-term forecast, although the market is not out of the woods yet. Five months of steady increases in the LightBox CRE Activity Index are fueling cautious optimism. Whether August and September continue the trend remains to be seen, but “if cap rates compress,” Clancy predicted, “we’ll see a real uptick in activity in the coming months because investors will not want to be left behind.”
About LightBox
At LightBox, we are at the forefront of delivering advanced and precise solutions for commercial real estate intelligence. Our dedication to innovation propels real estate professionals forward by providing them with the essential tools required to navigate complex decisions, minimize risk, and boost productivity across the spectrum of real estate operations. LightBox is renowned for its commitment to promoting excellence and fostering connections in the industry, serving an extensive clientele of over 30,000 customers. Our diverse client base spans commercial and government sectors, including but not limited to brokers, developers, investors, lenders, insurers, technologists, environmental advisors, appraisers, and other businesses that depend on geospatial information. To discover more about how LightBox can illuminate the path to informed real estate solutions, visit us at: www.LightBoxRE.com
Media inquiries: media@LightBoxRE.com
