• Headline volume across the major asset classes declined 12% from last May.
• This trend follows generally positive reads over the past 12 months.
• However, April figures were revised upward, shifting an initial decline in volume to a 14% gain, suggesting that when the dust settles, statistics won’t be as bleak.
• Office was the only asset class to post annual gains.
• Property trades have been limited and are running well below the 5- and 10-year average.

Colliers Insight

Share this with your followers

Office

Office volume surged 41% in May compared to the prior year, marking the tenth increase in the past 11 months and the strongest performance of any asset class. 

The largest deal of the month was Blackstone’s partial interest acquisition of 1345 Avenue of the Americas in Manhattan, valuing the asset at $1.4 billion. This trade could signal a shift in private equity and institutional interest in the asset class. Meanwhile, occupiers are finding value and acquiring assets, including NVIDIA. 

Industrial 

Sales volume has cooled on the industrial front. In May, $6.2 billion traded, a 26% decline from last year, marking the second consecutive month of reduced activity after 11 of the prior 12 months had been flat or positive. 

Portfolio activity has been subdued for much of 2025, although a couple of smaller deals took place in May. Hines Global Income Trust acquired three properties totaling nearly 2.5 million SF, while NorthPoint Development acquired three buildings in Las Vegas.

Multifamily 

Multifamily remains the leader in volume despite sales pulling back 18% in May. This bucks a trend of 11 straight months of year-over-year gains. 

The top three deals in May were all multi-property sales. Essex Property Trust acquired two assets with 420 units for $240.5 million in California; Sobrato Development purchased two properties with 273 units for $193 million; and a joint venture of PH Realty Capital and Rockledge Investments acquired a 34-property portfolio with 2,025 units in the Bronx for $192.5 million.

Retail 

Retail sales volume eased 7% compared to last year, well within the range of revisions, suggesting volume will likely be flat to slightly positive once the data stabilizes. 

Borough Developers’ acquisition of the leasehold of 673-695 Fulton Street in Brooklyn for $139 million and Hendricks Commercial Properties’ purchase of The Henry at Fritz Farm in Lexington, KY, for $137 million topped the market in May. High-priced retail condos in Manhattan continue to trade, with RFR Realty, on behalf of Amazon, acquiring 522 Fifth Avenue for $3,200/SF.

Hospitality 

Hospitality posted some mixed figures in May. On a year-over-year basis, sales were down 26%. However, on a month-to-month basis, they were up 37% as more assets and rooms traded. 

Blackstone acquired the 292-room Eventi in Manhattan for $175 million, or nearly $600,000/room, marking the largest deal of the month. Meanwhile, the 140-room Stanley Hotel in Estes Park, CO, and the 284-room Hotel Bossert in Brooklyn traded for $127 million and $100 million, respectively.