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U.S. Commercial Property Prices Slip Again in December
U.S. commercial property prices fell in December from November as growth seen across the property sectors earlier in 2022 continued dissipating, according to MSCI Real Assets. The RCA CPPI National All-Property Index dropped 1.2% from November and slowed to a 0.9% annual growth rate.
The impact of higher mortgage costs and falling deal activity has been felt on pricing across all property types, although some sectors are showing more acute changes. In 2022’s fourth quarter, total U.S. deal volume fell 62% from a year ago.
Apartment prices experienced the largest monthly price decline of all property sectors, falling 1.9% from November. The annual growth rate slowed to 1.8%, down from annual rates greater than 20% seen through 2022’s first half.
The industrial index stood out as the only index to post a monthly gain, up 0.5% from November. Like all indexes in December, industrial showed slowing annual growth.
- ◦Sale/Acquisition
