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.
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SOURCE Newmark Group, Inc.
