Name: Medical Office And AI Data Center Lead Biggest Commercial Real Estate Deals
Uploaded: 2026-03-21T18:14:33.000Z
Duration: 2 min 18 s
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For the second month in a row, we're seeing a significant cooldown in commercial real estate deal making.

Adverbs of degree

With interest rates still high and all that continued uncertainty in the broader economy, it's just getting tougher to get the deals done.

I've been watching this space for a few decades now on cnbc, but

now we're getting these amazing monthly spreadsheets of the actual deals provided exclusively to us by Moody's for the property play.

That's my new platform dedicated to commercial real estate investors.

Now, the latest one, which covers November, showed Transaction volume down 10% from November of last year.

October was the first month dealmaking went negative year over year since the post Fed rate hike.

But this wasn't just a continuation of that trend.

November transactions were even lower than November of 2020, which of course was the first year of the COVID pandemic.

Now, Moody's head of research says it's all about the higher for longer interest rates, policy uncertainty, a tenuous labor market and caution on the part of CRE lenders and investors.

Investors are leaning toward larger scale acquisitions and bigger, higher quality assets.

For example, the volume of all deals dropped significantly during the month, except for the deals greater than $100 million, which were 51% higher year over year.

That pushed the average deal size in November to $14.2 million, compared with the average of 12 million since the start of 2019.

In addition, the majority of assets in the top 50 sales were in class A.

That means the newest highest quality properties.

Multifamily apartments followed by office and then industrial offices are still being bought up, either for conversions or because they're still seeing those big discounts.

And the biggest deal in November though, was a kind of under the radar space.

These are the outpatient buildings you go to for treatment after or instead of the hospital.

The second biggest deal was of course, a data center complex because we just can't get enough of those spaces where we put all that AI.