A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.For the second month in a row, heat came out of the commercial real estate market in November. Transaction volume was 10% lower than November 2024, with just 1,800 deals overall, according to monthly data provided by Moody’s as a media exclusive to CNBC’s Property Play. It tracks the top 50 commercial real estate property sales across the U.S., in core segments of multifamily, office, industrial, retail and hotel.October was the first month of negative year-over-year transaction volume growth since the post-Fed rate hike recovery began in early 2024, but this was not just a continuation of that trend. November transactions were even lower than November 2020, the first year of the Covid pandemic. “This stems from the combination of higher-for-longer interest rates, policy uncertainty, a tenuous labor market, and caution on the part of CRE lenders and investors,” said Kevin Fagan, head of CRE capital market research at Moody’s. “However, market liquidity is still selectively open at two-thirds the volume of pre-pandemic, with a concentration in greater scale.”Get Property Play directly to your inboxCNBC’s Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox.Subscribe here to get access today.Investors are leaning toward larger-scale acquisitions and bigger, higher-quality assets. For example, all transaction sizes dropped markedly, during the month, except those sales greater than $100 million, which were 51% higher year over year. That pushed the average deal size in November to $14.2 million, compared with an average of $12 million since the start of 2019. In addition, the majority of assets in the top 50 sales were Class A.Sector highlights”The trading this month is consistent with late-cycle barbelling, where the …
