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Retail, Industrial Drive Year-Over-Year Gains in CRE Pricing
MSCI Real Assets said Thursday that U.S. commercial property prices rose in February, buoyed by growth in the retail and industrial sectors and a moderation of pricing declines in other property types. The RCA
CPPI National All-Property Index grew 1.3% year-over-year in February and increased 0.6% from January, an uptick that, when annualized, implies a stronger growth rate of 7.0%.
“The February gain marks a continued shift from the price declines seen in prior years as investor sentiment gradually improves,” MSCI Real Assets reported. “Stabilizing inflation and cautiously optimistic
expectations of Federal Reserve rate cuts have reduced market uncertainty, aiding the pricing alignment between buyers and sellers and fostering improved deal activity.”
Retail eclipsed all other property types in February, recording a 4.9% annual gain, according to MSCI Real Assets. A year ago, retail prices were falling at a rate of more than 3%. Industrial ras a close second with a 4.6% Y-O-Y gain.
- ◦Sale/Acquisition
