Commercial Real Estate Pricing Growth Slows to Pace Not Seen Since 2020
U.S. commercial property price growth slowed in November to an annualized pace not seen for more than two years, according to MSCI Real Assets. The RCA CPPI National All-Property Index rose 4.9% from a year ago and fell 0.4% from October, representing an annualized decline of 4.6%.
The industrial index maintained its spot as the leading sector for price growth, increasing 14.4% since last November. However, this marks the eighth consecutive month of declining growth rates for this property type.
Apartment price growth slowed again in November, dipping below a double-digit rate for the first time since early 2021. Over the past year the index grew 7.4%. Month over month, apartment prices fell more than any other sector, down 1.1%.
The annual gain in the retail index of 7.1% was just short of the apartment index, while the spread between retail and apartment price growth was the narrowest since 2014. Office prices rose 5.1% year-over-year in November, decelerating from the 12.7% rate posted at the outset of 2022.
- ◦Sale/Acquisition