2025 Midyear Report

COMMERCIAL SALES: A Slight Boost in a Cautious Market

The South Coast commercial sales market recovered momentum in Q2, recording 20 sales totaling $74.6 million, compared to just 11 transactions totaling $29.8 million in Q1. While deal volume is still down compared to recent boom years, the upshift in Q2 reects a steady ow of owner-users, select high-value transactions, and disciplined investor participation. In a market shaped primarily by interest rate pressure, transactions are still happening, particularly in lower price ranges, with owner-users and local investors stepping in where institutional buyers have pulled back. After surging during the post-COVID run-up in 2021–22, sales activity decreased profoundly in the years since, primarily in response to higher interest rates. This year’s 31 transactions at midyear is only 9% below the 5-year average, though dollar volume is down 49%. Now that we are more than two years into this cycle, its features have become familiar. High-leverage buyers are scarce, and there’s a clear pivot toward properties that align with long-term strategy—owner-occupancy, redevelopment, or cash-ow durability.

Read the full report here:

https://www.hayescommercial.com/wp-content/uploads/2025-Q2-HayesCommercial.pdf