IRVINE, Calif., Feb. 5, 2024—LightBox, a leading provider of commercial real estate information and technology, released its fourth quarter Commercial Real Estate (CRE) Activity Index, which sheds light on the slowdown in deal activity and provides insights into an anticipated upswing in second half of 2024.
The LightBox CRE Activity Index provides a comprehensive view of the market with information on three key indicators: property listings, environmental due diligence activity, and appraisal volume. In 4Q 2023, the LightBox Index dropped to 65.3, a decline of 20-percent from the previous quarter, and the lowest level in three years.
According to the report commentary, the fourth-quarter decline reflects the impact of rising interest rates, which led to a cautious approach by sellers and a decline in transaction volume. Despite less aggressive rate hikes in early 2023, a pricing gap between buyers and sellers, coupled with uncertainty about interest rate movements, kept the market in a pause mode.
“For market participants, fourth-quarter numbers are no big surprise, but the leading indicators for second half of the year paint a different picture and provide reasons for optimism,” said Dianne Crocker, LightBox principal analyst.
The analysis highlights several market developments that point to a more positive near-term forecast. “The potential for a busier 2H 2024 is expected as the Federal Reserve hints at moderate interest rate cuts. Several rate cuts by the Fed between late April and July would add to the building momentum for a rebound in the second half of 2024. The near-term forecast will likely deliver early signs of a moderate uptick in property listings leading into the second half of the year, and the capital that has mobilized to take advantage of the expected new wave of investment opportunities will move into play.”
Read the full report: 4Q 2023 LightBox CRE Activity Index
LightBox is the leading provider of comprehensive and accurate commercial real estate information solutions. With a commitment to innovation, LightBox empowers industry professionals with the tools they need to make informed decisions, reduce risk, and enhance efficiency across all aspects of real estate activities. Serving more than 20,000 customers, LightBox is the industry’s leading partner in driving excellence and connectivity. The firm’s clients comprise commercial and government agencies including brokers, developers, investors, lenders, insurers, technology providers, environmental consultants, valuation professionals, and various other location-reliant industries. For more information, please visit: www.LightBoxre.com
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