LightBox Monthly CRE Activity Index Continues Trajectory of Improvement

IRVINE, Calif., July 9, 2024 /PRNewswire/ -- LightBox, a leading provider of commercial real estate (CRE) information and technology, released its Monthly CRE Activity Index for June, reflecting the fourth month in a row of improvement.

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. The June LightBox CRE Activity Index now stands at 93.9, an uptick over May's 87.2 and well above December's three-year low water mark of 48.2.

According to the report commentary, the latest improvements in the CRE Activity Index supports anecdotal evidence that even with interest rate cuts effectively on hold pending more definitive inflation data, the CRE market is moving forward slowly and cautiously.

June 2024 continued to demonstrate a slow pace of market thaw after the late 2022/early 2023 slowdown. At the start of 2024, most forecasters anticipated that the Federal Reserve would have reduced interest rates by now so it's worth noting that despite any change in monetary policy, slow momentum is building in commercial property investment, lending, loan divestitures, and distressed asset deals.

"With every passing month, we're seeing evidence that intrepid CRE professionals are wading into the waters of dealmaking. While the market is still below the early 2021 Index baseline, these recent signs are encouraging as the industry readies itself for the transfer of assets that typically happens after an economic downturn," said Manus Clancy, LightBox head of Data Strategy.

The latest LightBox CRE Activity Index suggests that several tailwinds are fueling continued improvements as assets move into play, either due to forced transactions or because market players are willingly putting properties on the selling block as the bid-ask spread narrows.

"Among the more encouraging signs recently has been the uptick in big portfolio sales -- the fact that there are multiple bidders for many distressed office sales, and that property sales are taking place across all segments of the market. The LightBox team talked extensively about this on the recent CRE Weekly Digest podcast—that buyers are no longer waiting for another leg down in property values. They are putting cash to work, which is a great sign," Clancy said.

As for what to expect in the near term, the report noted that if last July is any indication, the July 2024 CRE Activity Index could come in slightly below June due to a characteristic summer slowdown, but this year is anything but typical. 

Read the full report

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

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SOURCE LightBoxRE