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Small Property Sales ‘Easily Outpaced’ Larger Assets This Year


Small Property Sales ‘Easily Outpaced’ Larger Assets This Year

Some $28.11 billion in smaller assets changed hands last year.

By Lynn Pollack | August 30, 2021 at 05:30 AM

Sales of properties valued between $5 million and $25 million have “easily” outpaced
those from the same period in 2019 and 2020, according to a new report from Green
Street, with $28.11 billion in smaller assets changing hands.

That’s an increase of 60%, according to Real Estate Alert data, and “roughly mirrors the
hefty 62.3% rise in the institutional segment of deals over $25 million, reflecting a
pandemic-induced slump in investment sales in the first half of 2020,” Green Street
notes in its report. But “compared with the first half of 2019, however, smaller trades
jumped 22.5% in the first half of this year, while aggregate sales over $25 million were
up just 2.5%.”

On a year-over-year basis, sales of properties in that range rose among every property
type, with industrial leading the way with a 98.9% increase in the first half. Multifamily
sales were up 68.5% at $8.61 billion, and larger industrial deals increased by 120.9%.
Retail sales increased by about 50% to $5.28 billion and “easily outperformed the
over-$25 million marketplace,” which posted a 25.5% improvement. And office sales
increased 29.5% in the first half, while hotel trades rose 17.3%.

“The momentum is strong,” said John Chang, a senior vice president and national
director of research services at Marcus & Millichap. “Even with this spike of rising
pandemic levels, barring a major lockdown, the private investors that I’ve spoken to are
aggressively trying to place capital. I think that carries us through the remainder of this
year and into next year.”

Full article by Lynn Pollack: https://www.globest.com/2021/08/30/small-property-sales-easily-outpaced-larger-assets-this-year/?slreturn=20210827154114