Industrial Boosts Sunbelt Markets in 3Q 2024: Top 3 Bottom 3 Metros

The Sunbelt dominated our top three commercial real estate (CRE) markets in the third quarter, while California underperformed, with two of its major cities at the bottom of our rankings. SitusAMC’s proprietary analysis is based on the weighted average of NCREIF Classic NPI total returns across the main commercial real estate (CRE) sectors in 3Q 2023, compared to the previous quarter. We analyze only the top 30 metros based on total NPI ending market value (EMV). 

CRE performance improved in the third quarter, with NCREIF Classic NPI overall CRE returns up 100 bps QoQ to 0.8%. Though meager, it was the first quarter of positive returns in two years. Still, one-year trailing returns were in the red at -7.9%. Office continued to be the worst performer among the main property types. Apartment, industrial and retail each had positive returns between 1% and 2%.   

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