Shkury said the market has picked up some momentum from the first quarter to the second and specifically pointed to the multifamily asset class, which saw a 242% increase in dollar volume, from roughly $1.1 billion to around $3.9 billion, over the same period.
Ariel found that the year-over-year change in sales in the first six months breaks down as follows:
- Multifamily: 41% decline, to $5.1 billion
- Commercial (including retail and hotels): 36% decline, to $1.7 billion
- Industrial/warehouse/self-storage: 63% decline, to $697.2 million
- Development: 29% decline, to $2.5 billion
- Office: 48% decline, to $2.4 billion
- Special purpose: 53% decline, to $441.2 million
“Sellers who do not need to sell today are just not,” Shkury said. “Unless you really have to transact, you do not transact in this environment, because clearly interest rates are higher, so you have to compromise on price.”
Ariel’s investment sales report comes three months after Crain’s reported that the collapse of Signature Bank contributed to an overall reduction in the availability of multifamily financing in the first quarter of 2023.