RealtyRates.com Market Survey Reports Increased Revenue For All But Apartments But Decreased Sale Prices And Increased Cap Rates For All Property Types During 4th Quarter 2023
During the 4th Quarter of 2023, movements in operating fundamentals were generally negative quarter over quarter for all property types in that while revenue increased for all but Apartments, sales prices were down while overall cap rates were up.
With regard to Apartments, asking rents were down although effect rents were up. However, expenses were also up resulting in decreased NOI. Sale prices were also down while cap rates were up.
With regard to Industrial properties, although revenue including NOI was up quarter over quarter, sale prices were down and cap rates were up. Office and Retail properties on the other hand reported increased rents but NOI was nevertheless down as were sale prices while cap rates were up quarter over quarter.
The general feeling of potential improvement that recently prevailed is far less than universal. The accelerated shift to online purchasing has had a direct negative effect on the Retail sector, likewise the remote working effect on particularly the CBD Office sector.