T
he commercial real estate market has shown signs of improvement despite a decline in transaction volumes. According to Altus Group's Transactions & Investments Quarterly Report, national transaction activity for Q3 2024 totaled $40.1 billion, down from $43.0 billion in the previous quarter and $44.4 billion in the same period last year.

    Transaction numbers decreased by 10% compared to Q2 2024, with a 6.6% drop in dollar volume and a 3.8% decrease in total square footage transacted. However, Cole Perry, associate director of Research at Altus Group, notes that the rate of decline has slowed, suggesting an improving financing environment and growing optimism.

    Mixed-use, manufacturing, automotive, and office properties led the way with positive quarter-over-quarter price growth per square foot, while hospitality properties saw a 2.6% decline. Multifamily transactions accounted for the largest share at $12.2 billion (30.4%), followed by industrial ($9.9 billion), office ($8.0 billion), and retail ($6.1 billion).

    Compared to Q3 2023, multifamily transaction volumes dropped 11%, while industrial fell 6%. Retail and office properties showed more moderate declines than the previous year. These findings suggest a stabilization in the market, with certain sectors showing signs of recovery.