LightBox, a company that provides information and technology for commercial real estate, reported that its Monthly CRE Activity Index for December had a reading of 56.8. This was a decrease of 23.7 points from the previous month. Despite this decline, the index remained higher than it was during the same time last year.
According to LightBox, it is normal to see some moderation in activity at the end of each year; however, this decline was larger than what has been seen in previous years (an average drop of 19.3 points over three years). The main factors contributing to this decline were increasing Treasury yields due to investor concerns about federal deficit and potential tariffs as well as persistent inflation.
On a positive note, compared to December of last year, there was an increase of 8.6 points in the CRE Activity Index fueled by double-digit growth in property listings and environmental due diligence components.
Manus Clancy, head data strategist at LightBox stated that they are encouraged by seeing an uptick in property listing activity going into January with sellers bringing assets onto market despite challenges faced during Q4 last year.” He also mentioned increased portfolio activity observed by their Market Advisory Councils for capital markets and environmental due diligence along with growing interest from institutional investors and renewed engagement from clients who were previously waiting on sidelines throughout most part if not all through outlasted challenging times back then.”
In summary:
LightBox’s Monthly CRE Activity Index showed a reading of 56.8 for December which is down by 23/7 points compared to November but still higher than last year’s levels.
The average drop over three years has been only around half or so less – just under twenty percent- according accordingly
to seasonal norms while steeper declines have occurred before when looking back historically speaking overall trends show us how things usually go up again after dropping off like clockwork without fail every single time no matter what happens in between.
The decline was mainly due to rising Treasury yields caused by investor concerns about federal deficit, potential tariffs and persistent inflation.
On the other hand, compared to last December, there was an increase of 8.6 points in the CRE Activity Index driven by double-digit growth in property listings and environmental due diligence components.
Manus Clancy from LightBox stated that they are encouraged by this uptick in activity going into January with more assets being brought onto market despite challenges faced during Q4 last year. He also mentioned increased portfolio activity observed among their Market Advisory Councils for capital markets and environmental due diligence as well as growing interest from institutional investors and renewed engagement from clients who were previously waiting on the sidelines during challenging times back then.
