The in-depth, city-by-city report discusses capitalization rates, discount rates and industry metrics reflective of the current market activity
NEW YORK, March 4, 2025 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers, announces its 2025 Valuation & Advisory (V&A) North American Market Survey, highlighting some of the most significant indicators in commercial real estate including capitalization, discount, reversion, market growth and expense growth rates.
Newmark's V&A group is led by a team of real estate valuation and appraisal experts with deep experience evaluating properties and providing insights across a range of sectors. The report draws on this expertise to dive into key sectors including industrial, multifamily, retail/regional malls and office as well as non-traditional property types including agriculture, self storage, senior housing and others.
Newmark is also excited to introduce the Debt Capital Market Snapshot, the newest component in this year's edition. This insightful addition is conveniently featured after the National Executive Summary, offering valuable insights into the ever-evolving financial landscape. This section provides a comprehensive overview of current benchmark rates and yields, complimented with historical context. The Snapshot also highlights equity indices, including SOFR swap rates, treasury yields and REIT indices, which are essential for commercial real estate investors and stakeholders.
Key sector highlights of the report include:
- Agriculture: U.S. agricultural market faced continued pressures in terms of profitability and pressures from uncertainty in federal legislation. Despite these pressures, the United States Department of Agriculture reports that most states saw an increase in cropland value.
- Convenience Stores & Automotive Energy: Fuel consumption volumes declined for the third year in a row (5% year-over-year), which shows a stabilized downward trend. There are approximately 60,000 car washes in the U.S. Grand View Research predicts the $15+ billion car wash industry will grow at a compound annual growth rate of 6.1% from 2024 to 2030.
- Hospitality, Gaming & Leisure: U.S. lodging sector recorded modest Revenue Per Available Room growth, impacted by reduced summer demand, as discretionary spending waned. Occupancy and Average Daily Rate increased slightly in most markets, supported by easing inflation and interest rate cuts.
- Industrial & Logistics: The national industrial market saw the pendulum swing from the peak leasing volume and hyperinflation of rents of 2021 and 2022 to a sharp slowdown in activity in 2024, particularly in the fourth quarter.
- Multifamily: Market fundamentals remain strong, especially relative to other sectors. Investment in multifamily properties remain well below peak levels achieved in 2021-2022.
- Office: In CBD markets, higher quality office has continued to lead performance.
- Residential Development: Demand for housing in the Southeast and Midwest remains strong, while supply of construction ready lots and shovel-ready land remains constrained. Increases in quick-move inventory and high mortgage interest rates are forcing builders to offer incentives in over 75% of new home communities nationwide.
- Residential Build-for-Rent (BFR): Fundamental demand for BFR housing remains strong, assisted by high mortgage interest rates and high home prices. Investment sales activity of BFR communities remained significantly below its peak in 2021. The national occupancy level of BFR stood at 95%, outperforming the traditional apartment market by nearly 2.5%.
- Retail & Regional Malls: The retail sector continues to show strong fundamentals. A lack of significant new development since the Great Financial Crisis has helped ease the effects of a slowdown in leasing activity, as U.S. retail assets over 20,000 square feet sit at an availability rate of just 5%, the lowest in almost 20 years.
- Restaurants: The National Restaurant Association predicts that restaurant sales will exceed $1.1 trillion in 2024, the largest year ever for the industry. Even though menu inflation eased considerably, menu prices still rose faster than consumer spending.
- Self Storage: Muted customer demand facilitated the continued trend of replacing longer term existing tenants paying high rent with new tenants paying lower rent.
- Senior Housing: Robust recovery in 2024 has operators, investors and lenders cautiously optimistic for continues growth in 2025 as the Baby Boomer generation ages.
- Medical Outpatient Buildings (MOB): The medical outpatient building market is experiencing expansion due to policy changes like the Affordable Care Act (ACA) and Medicaid expansion, as well as significant demographic trends, most notably the aging of the Baby Boomer generation.
- Merger & Acquisition Activity: The US mergers and acquisitions (M&A) market is set to gain momentum in 2025, following a year of uneven recovery. Several macroeconomic and sector-specific factors are expected to drive this growth.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended December 31, 2024, Newmark generated revenues of over $2.7 billion. As of December 31, 2024, Newmark and our business partners together operated from approximately 170 offices with more than 8,000 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
View original content to download multimedia: https://www.prnewswire.com/news-releases/newmark-announces-its-2025-valuation--advisory-north-american-market-survey-302392175.html
SOURCE Newmark Group, Inc.
