Trades of commercial real estate properties valued from $5 million to $25 million fell 10.7% to $39.58 billion from January to June, down from $44.32 billion in the first six months of 2023, according to Green Street’s Sales Comps Database. By comparison, sales activity in the $25 million-plus market was down only 8.6%. “That’s the first time since full-year 2021 that larger sales across property types outperformed the private-capital market,” Real Estate Alert reported.  

                                                                                                        However, that’s largely a result of several factors: fewer distressed deals in the smaller-sales space, private investors buying more expensive properties while institutions wait out volatility, and two massive apartment trades.  

                                                                                                          According to the supplement, one reason for seemingly stronger sales volume in the larger-deal space is that distress doesn’t crop up as much in the private-capital market. Although the market for smaller property sales didn’t hold up as well in the first half as its institutional counterpart, brokers are already seeing a rebound afoot.