CRE Pricing Rises Year-Over-Year for 3 of the 4 Major Property Types

Commercial property prices rose in September, with annual gains for all but one of the major property sectors, MSCI Real Assets reported. The RCA CPPI US National All-Property Index increased 2.6% from a year earlier and rose 2.2% from the second quarter, implying a faster annualized pace of growth of 9.0%.

The exception among property types was apartments, for which pricing declined 0.8% year-over-year and 3.3% from Q2. Prices in the multifamily sector are now 20% below their most recent peak, recorded in July 2022.

Otherwise, retail prices grew by 5.5% Y-O-Y, while CBD and suburban office pricing increased by 5.1% and 4.5%, respectively, from the year-ago period. Industrial’s pricing growth was slightly less at 4.0% Y-O-Y.

“Investor sentiment leaned toward cautious optimism in the third quarter of 2025, as investment activity grew at a double-digit pace relative to a year prior,” MSCI Real Assets reported. Deal activity has now increased for six consecutive quarters, and expectations of further rate cuts by the Federal Reserve are helping build “a more favorable foundation for a potential market rebound.”

Inside The Story

MSCI Real Assets

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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