Commercial Property Sales Under $25M Show 3.5% Gain in Early 2025 Article originally posted on Globe St. on August 21, 2025 Smaller commercial real estate transactions are showing signs of renewed strength, even as overall activity remained below the market’s peak three years ago. According to data from Green Street, sales of properties priced between $5 million and $25 million totaled $45.24 billion in the first half, a 3.5% increase from $43.7 billion during the same period in 2024. While deal volume is still down about 27% from the 2022 high of $62.26 billion, industry analysts say momentum is returning. Growth has been driven largely by multifamily, industrial and retail assets, with select office properties reentering the mix. Smaller dealmaking represents an important share of the overall market, even though larger transactions continue to account for most of the sector’s dollar volume. Green Street’s sales data, gathered through its own reporting team, broker networks and transaction participants, tracks deals starting at $5 million. Although the database is respected, the firm notes that coverage may not be exhaustive. Complementing that, information on smaller transactions was collected from a nationwide survey of 46 brokerages, property records, press releases and other sources. Market share by property type in the first half of 2025 shows multifamily at 26%, industrial at 24%, retail at 21%, offices at 18%, hotels at 8% and niche categories (including self-storage and data centers), at 3%. The distribution is roughly consistent with recent years; in 2024, multifamily and industrial each accounted for roughly a quarter of activity, while in 2023, multifamily led with 27%. Financing trends have also played a key role. Regional banks have stepped up their lending, which Green Street said has been critical to maintaining the pace of smaller transactions. Even office properties are once again receiving bank support, provided they are well-located and generate strong cash flow. Beyond banks, capital sources have diversified, with an uptick in commercial mortgage-backed securities issuance, lending from debt funds and government-sponsored enterprises. Higher interest rates, which improve debt yields, have also made the market more appealing for certain investors. Buyer profiles are shifting as well. Green Street reports that private investors, including family offices, syndicators, and high-net-worth individuals—remain the main participants in the sub-$25 million range. However, a growing number of international investors, who traditionally target larger institutional assets, are moving down-market in search of better fundamentals and newly reset valuations.