T
he Commercial Real Estate Market Index (CREMI) from the Federal Reserve Bank of Atlanta provides insights into general commercial real estate conditions across over 350 US cities. The index offers a high-level view of multiple asset types, including hospitality, industrial, multifamily, office, and retail, serving as a starting point for assessing market risk and performance.

    Commercial real estate conditions remained mixed in the second quarter, with some sectors performing above their long-term average while others lagged behind. Hospitality (21% above), industrial (14% above), and retail (32% above) showed positive performance, whereas multifamily (-7%) and office (-26%) metrics continued to struggle.

    Breaking down the data further, hospitality markets were largely positive, with 90% performing above their long-term average. Industrial and retail markets also showed strong performance, with 72% and 86% of markets outperforming their averages, respectively. In contrast, multifamily (56%) and office (79%) markets were more likely to be underperforming.

    The CREMI results highlight the varying performance across asset classes in the second quarter. Oversupply factors in office and multifamily led many markets to underperform, while consumer behavior, balanced supply, and economic health contributed to strong performances in retail, hospitality, and industrial sectors.