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CRE Pricing Posts Biggest Annual Gain in Three Years
Commercial property prices rose in October, with all major sectors posting annual gains, MSCI Real Assets reported Thursday. The RCA CPPI National All-Property Index increased 4.2% from a year earlier, representing the largest annual increase in three years. Month over month, the index rose 0.8%,
implying an annual growth rate of 10.7%.
Among the major property types, industrial saw the fastest annual growth in pricing at 4.9%, eclipsing the All-Property Index. CBD and suburban office pricing rose by 4.6% and 4.2%, respectively, on a year-over-year basis. Retail prices increased 4.7% Y-O-Y, while apartment pricing managed a more modest Y-O-Y gain of 0.5% for the third consecutive month of gains following nearly three years of annual losses.
“In a year defined by cautious optimism among investors due to improving financing conditions, the outlook more recently has been clouded by uncertainty following the government shutdown and the resulting lack of economic data,” MSCI Real Assets reported. “Deal volume fell 22% Y-O-Y in October; however, investors continue to be willing to pay higher prices for the assets.”
- ◦Sale/Acquisition
