Office volume was limited in October, with $3.1 billion trading. Only 188 properties transacted, the lowest monthly total since 2011.

Deals, while sparse, are still getting done. The largest transaction of the month was the sale of Metropolitan Square in Washington, D.C., for $381.3 million. It was a partial interest sale, with the buyer assuming the mortgage. Other trades took place in core office markets, including Manhattan, Boston, San Francisco, Palo Alto, and Miami.

Industrial was not able to buck the broader trend of a sluggish October. The asset class ranks behind multifamily with a total volume of $4.8 billion.

Smaller portfolio deals drove activity in October, generally with less than five total assets. New Jersey racked up multiple sales, while California, North Carolina, and Minnesota had one each. All transactions clocked in at over $50 million in total consideration. The largest single-asset deal was Prologis’ acquisition of the 1.4 million square foot Airpark Logistics Center in Goodyear, AZ, for $184 million.

The perpetual asset class leader for volume, multifamily traded $6.2 billion in October, a 72% decline from last year. Deals are restricted, with 255 properties trading, the lowest figure since early 2011.
Several $100 million-plus deals closed in October, led by TA Realty’s two-property acquisition from Crescent Communities and Pearl Street Partners for $204.6 million. The properties are located in Cary, NC, and Nashville. Other prominent deals took place in Denver; Raleigh; Phoenix; Randolph, MA; Carrollton, TX; Knoxville, TN; Calabasas, CA; and Eugene, OR.

Of all asset classes, retail volume is down the least, off 48% compared to last year. Deals, however, decreased more substantially at 62%. Only 266 properties traded, the lowest number since the pandemic.

The largest deal of the month was a two-property transaction in Massachusetts to Urban Edge. It totaled 1.4 million square feet and traded for $314 million, or a 4.9% cap rate on next year’s income. In Naples, Hoffmann CRE sold 24 properties, 15 of which were retail, to M Development for a combined $184.4 million.

Hospitality volume is down 75%, the most of all asset classes compared to last year. To be fair, October was the highest month for sales in 2022.

The largest trade of the month was the newly crowned Hilton Boston Park Plaza, which sold for $370 million, or a 7.1% cap rate on last year’s income. Other significant deals took place in Manhattan, Miami, Boston, and Renton, WA. Unlike some recent office trades, each property sold for more than its previous price.