The recovery in commercial real estate has been slow and bumpy, with October marking the first negative year-over-year transaction volume growth since early 2024, according to Moody’s. Deal volume turned positive in 2023 but slowed significantly in 2025 due to high interest rates and economic uncertainty.

October saw $24.4 billion in sales, representing 70% of 2019 sales. Industrial and multifamily properties led the top 50 deals, with the hotel sector showing 6% growth. The New York Edition hotel was sold for $231.2 million, highlighting the trend of converting office buildings to hotels and residential spaces for increased value.

The multifamily segment experienced a 27% decline in October after showing volumes higher than pre-Covid levels. Office properties continued their rocky recovery, with discounts and conversions becoming common. The top sale in October was the Sotheby’s headquarters, likely to be repurposed for healthcare or medical offices, signaling institutional interest in discounted office buildings.

Read more at CNBC: Commercial real estate deal volume drops for first time in nearly 2 years