- The market woke up in Q4 with nearly $120 billion in volume — the first time it has crossed $100 billion in a quarter since 2022 Q4.
- In aggregate, Q4 volume increased by 34% across the major asset classes, led by multifamily (up 64%), office (36%), and industrial (33%).
- Portfolio and entity-level deals, as well as single-asset sales, contributed to activity in Q4.
- Of the top 25 markets for investment sales, just five posted a decline in annual volume.
- The strong end to the year may be the springboard the market needs for a more active 2025.
After back-to-back years with slowing Q4 volume, 2024 bucked the trend, returning the market to a sense of normalcy. Historically, Q4 posts the strongest trading activity of the year, and 2024 was no exception, with $119.8 billion in volume, representing a 34% increase from the year before. In addition, the number of properties traded rose after several months of sluggishness. While investors are becoming more active, the interest rate environment is not providing the boost the market had hoped for.
Aaron Jodka
Dallas, Los Angeles, Manhattan, Atlanta, and Phoenix ranked as the top investment sales markets in 2024.
Office
Price adjustments are drawing investors back into the office market. While activity isn’t at pre-pandemic levels, it topped $21 billion in the quarter, nearing year-end 2022 levels. Total sales increased 36% compared to last year, with CBD activity rebounding strongly. Sales in this sector more than doubled compared to a year ago, marking the largest volume since 2022 Q1. Manhattan roared back to life with a 54% increase in sales for the year, reaching $7.6 billion, more than double that of second-place Los Angeles.
Industrial
With a strong Q4, industrial volume increased 33% year-over-year, with $33 billion in sales. The asset class had hovered around flat gains or slight declines in recent months, but the momentum is clear. The latest quarter’s sales levels exceeded the 2018-2019 quarterly average. With institutional investors back in the market, there is new support for deals. Dallas finished as the number one sales market with $6.4 billion in volume, while Charlotte; Vallejo-Fairfield, CA; and Jacksonville posted record sales levels.
Multifamily
Multifamily came roaring back in Q4, with volume up 64% compared to the prior year. A total of $45.5 billion traded, in line with the 2018-2019 average. Portfolio and entity deals grew a whopping 261% in Q4 and 64% on the year. Multifamily led all asset classes in both total volume and growth in 2024. Dallas reigned supreme as the top investment sales market once again, outpacing Los Angeles by $2.8 billion. San Francisco moved up the ranks to 14th in the top 25, posting a record volume of $3 billion, roughly half of which was portfolio/entity-driven.
Retail
Retail volume has had fits and starts, with some quarters posting year-over-year gains while others show declines. The year ended with an 8% increase on $14.4 billion in sales. Centers drove this rebound with a 21% gain, while shops declined by 12%. There was a general lack of portfolio and entity transactions throughout 2024, which weighed on overall volume. Manhattan emerged as the top sales market, with $2.6 billion in volume. Although the top five markets held steady from 2023, there was a slight shift in their order.
Hospitality
Hospitality volume eased in the second half of 2024, posting consecutive quarters of decelerating sales activity. The year ended with $5.5 billion in sales, down 28% from 2023. Both full-service and limited-service properties posted declines in the quarter and on the year. There were notable changes in the top markets for sales in 2024, with Orlando taking the crown after finishing 11th the year before, thanks to one major transaction. Meanwhile, Honolulu finished 5th after not ranking in 2023 and coming in 58th in 2022.
