LightBox Monthly CRE Activity Index Declines Slightly Against Volatile Market Backdrop
IRVINE, Calif., Sept. 9, 2024 /PRNewswire/ -- LightBox, a leading provider of commercial real estate (CRE) information and technology, released its Monthly CRE Activity Index for August, showing a slight decline from July, which was encouraging given last month's economic volatility.
The Index, an aggregation of daily transactions over the LightBox network, measures shifts in the volume of property listings, appraisals, and environmental due diligence assessments. While August's Index of 89.9 broke the five-month trend of steady, yet modest, increases that began in March, the reading came in just 2.5 points below July's 92.4 reading. However, the year-over-year comparison reveals stronger momentum. The current Index is a solid 9 points higher than August 2023's figure of 80.9, indicating a faster pace of market activity across the board. This strong uptick in velocity is an encouraging sign of the market's resilience and growth since the tepid pace of CRE deal making last summer.
"The relative strength of the August CRE Activity Index, especially compared to last year, sets the stage for a strong fourth quarter," observed Manus Clancy, LightBox head of Data Strategy. "With inflation stabilizing near the Fed's 2% target, interest rate cuts seem imminent, and the recent market forecasts are fueling even more optimism for the months ahead," Clancy said.
CRE transaction activity has inched up every month since March and despite a small (and expected dip in August), the buyer base is expanding, interest in evaluating opportunities is rising, and recent acquisitions have surfaced across all property types and geographic regions. Although there is much talk of distressed properties as a potential investment opportunity, transaction volume is still relatively low, but on the rise.
While Fed rate cuts won't solve all of CRE's problems, past experience shows that when rates decline particularly after a protracted period of historically high rates, CRE activity picks up quickly. "September has a reputation for being bearish," said Clancy, "but investors seem teed up to pull the trigger on transactions in a way that we haven't seen yet this year. After the first rate cut, I expect the types of dealmaking we've been highlighting in the CRE Weekly Digest podcast will only accelerate."
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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