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CRE Deal Volume and Pricing Once Again Ebb in August
With apartments once more leading the way and industrial seeing the shallowest drop, all major property sectors again posted annual price declines in August amid a sustained retreat in deal activity, MSCI Real Assets said Thursday. The RCA CPPI National All-Property Index dropped 9.9% from a year ago and was unchanged from July.
“The rising interest rate environment and surge in borrowing costs have weighed on deal activity and pricing across property sectors,” according to MSCI. Deal volume for the first eight months of 2023 was 58% lower than the same period of 2022.
That being said, MSCI Real Assets noted that the strongest monthly declines in prices were in the fourth quarter of 2022 and Q1 2023 as investors felt the impact of changing interest rates. On an annualized basis, the all-types index fell only 0.5% from July to August of this year.
- ◦Sale/Acquisition
