The Commercial Real Estate Development Association Research Foundation (formerly the NAIOP Research Foundation) today released the annual Commercial Real Estate Development Association Market Monitor (formerly NAIOP Market Monitor), which examines transaction volume and market volatility across the nation's 102 largest office and industrial real estate markets.

Drawing on transaction volume and capitalization rate data from CoStar Group, the report analyzes how market size and volatility have shifted over the past year, providing developers and investors with insights into evolving regional investment trends and market performance.

Key Findings:

• Overall, the largest 102 office and industrial markets grew in sales activity over the last year, the second consecutive year of growth for both product types.
• Transaction volume in the largest 51 office markets grew faster than in the second-largest 51 markets, while volume in the second-largest industrial markets grew faster than the largest 51 industrial markets.
• More office markets in the Midwest declined in relative size than grew.
• Several industrial markets experienced significant changes in relative transaction volume, particularly among the second-largest 51 markets, where large individual transactions can have a major effect on total volume.
• Secondary markets around inland logistics hubs appear to have benefited from recent market dynamics, while at least two port markets (Savannah, Georgia, and Norfolk, Virginia) have experienced a significant decline in relative size, likely because of shifting patterns in international trade.
• Relative volatility rose in several Midwestern industrial markets.

“Commercial real estate investment activity continues to normalize, but the recovery is unfolding differently across property types and markets,” said Marc Selvitelli, CAE, president and CEO of the Commercial Real Estate Development Association. “This report shows that investors are increasingly looking beyond traditional gateway markets, while office markets continue to stabilize following several years of repricing. These insights help industry professionals identify where capital is flowing and how market conditions are evolving across the country."

The report was prepared by Maria Sicola, Elle Saling and Charles Warren using transaction volume and capitalization rate data provided by CoStar Group.

Download the full report at credaresearch.foundation.