Global commercial property prices sustained their fall in the third quarter of 2023, as investment activity continued to contract across most commercial markets, MSCI Real Assets said Thursday. However, the pace of price declines has slowed significantly in recent months.
The Global Cities Composite Index fell 4.5% from a year earlier in Q3. That represented a significant improvement over the decline in Q2, because the annualized decrease over the latest quarterly period stood at only 1.5%. “For the moment at least, the fall in commercial property prices appears to be decelerating,” MSCI Real Assets said.
The slowdown in price declines was consistent across both North America and Europe. Conversely, in Asia Pacific, where prices began falling much later, the regional composite was the only one of the three regions in which the decline gathered momentum in Q3.
Hong Kong posted the worst quarterly decline of the global cities, at 3.8%. On the other side of the globe, Toronto was the only global city in which prices continued to soar, according to MSCI Real Assets’ report.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-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 15-20 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).