In November, commercial real estate transaction volume dropped by 10% compared to the previous year, with just 1,800 deals overall. This decline is attributed to higher interest rates, policy uncertainty, and cautiousness among lenders and investors, according to Moody’s data. Larger-scale acquisitions and higher-quality assets are now favored by investors, with average deal size increasing to $14.2 million.

Multifamily properties led the way in November with 20 transactions, followed by office with 11 and industrial with eight. The office sector saw significant discount deals, such as a property in New York City sold at a 53% discount. Companies are focusing on essential office properties to have more control over their operations and real estate costs. Medical office properties continue to see strong demand, with a $7.2 billion portfolio sale in November.

Portfolio deals were a major feature in November, accounting for 17 of the top 50 transactions. Data centers, a hot sector in commercial real estate, had a significant sale of $615 million for three industrial properties in Leesburg, Virginia. Overall, the market shows a trend towards larger-scale acquisitions and a focus on essential properties for long-term investment.

Read more at CNBC: Commercial real estate dealmaking slows again in November