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Commercial Property Pricing Slips in October Amid Deal Slowdown
U.S. commercial property prices fell in October from September, although they still increased from a year ago, MSCI Real Assets reported. The RCA CPPI National All-Property Index dropped 0.4% on a monthly basis, for an annualized decline of 4.5%. The annual change was a 7.3% increase.
Pricing has come under pressure amid a spike in debt costs and a slowdown in deal activity in 2022. Sales volume fell at a double-digit rate in October, the third straight month of significant annual declines.
Prices of apartment properties declined 0.6% from September and rose 11.3% from a year prior. Retail prices fell 0.3% from September and the annual pace of growth slowed to 8.2%. Both sectors reached record annual rates of price growth early in 2022.
Industrial stood out with a 0.7% monthly gain and a 16.9% annual growth rate. Still, the annual pace has decelerated for seven consecutive months. CBD office, which declined 0.3% from September, rose 1.9% from a year ago, the smallest annual gain across the property types.
- ◦Sale/Acquisition
