CRE Sales Transaction Showing Signs of Recovery

Moody's sees early signs of a recovery in CRE as the decline in transactions slows. Despite Powell urging "patience," a rate cut later this year could bring vital relief for capital markets.

Signs of life: CRE transactions decline has moderated to -8% year-over-year in Q1 2024, a significant improvement from -18.4% in Q4 2023 and -55.1% in Q2 2023. Though office transactions have fallen in Q1 2024, the decline mainly reflects the effect of large deals in Q4 2023, such as a $2 billion transaction at 250 Vesey Street and a $1.5 billion deal at Two Manhattan West.