Small-cap CRE Market Hits $3.7 Trillion in Q3: Data

Originally published on October 10, 2022, by Randy Fuchs for Boxwood Means.

The aggregate market value of small-cap commercial real estate properties increased to a new peak during the third quarter despite an emerging slowdown in sales transactions and asset price growth.

The total market or equity dollar value of small-cap CRE rose to an estimated $3.7 trillion during Q3 according to Boxwood Means’ latest research, representing a 2.3% increase or $81 billion over the previous quarter and a robust 14.4% and nearly $460 billion added YOY. While recent growth in CRE asset prices has slowed amid a broad pullback in sales volume, there was still adequate price momentum in the market to sustain increases in asset values.

Furthermore, lofty prices for income-producing assets have been bolstered by historically low small-cap commercial vacancy rates and further net occupancy gains as noted in another Boxwood research report.

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