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CRE Prices Post Slowest Annual Decline in More Than a Year
MSCI Real Assets said the RCA CPPI National All-Property Index fell in February, declining 4.0% since February of 2023. Although this represents the slowest pace of annual decline the index has posted since the end of 2022, the pace of decline in monthly returns has been accelerating. The index fell 0.3% in February from January.
The office sector again led the price declines in February, falling 15.2% year-over-year. “As the future need for office space remains unclear, CBD office prices have been hit particularly hard, falling at roughly 30% Y-O-Y for the last nine months,” according to MSCI. Suburban office has fared better and was down 11.6% Y-O-Y in February.
Meanwhile, apartment prices posted the largest monthly decline of the property types in February, falling 1.0%. The annual pace of decline for multifamily prices has moderated for six consecutive months, though. In February, the apartment index was down 8.9% from a year earlier.
- ◦Sale/Acquisition
