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Suburban Office Leads as U.S. CRE Pricing Posts Best Annual Gain Since October 2022
U.S. commercial property prices rose in May, with the RCA CPPI US National All-Property Index posting its strongest annual gain since October 2022, MSCI Real Assets said Thursday. The index increased 1.6% from a year ago and rose 0.4% from April, implying a faster annualized pace of growth of 5.4%.
Suburban office prices led all property types in May, rising 4.6% from a year earlier and gaining 0.7% from April, a monthly advance that, when annualized, puts the pace at 9.3%. CBD office prices rose 1.4% year-over-year and 0.1% from April. The index has posted 10 months in a row of positive annual growth, though it remains 50% below its March 2022 peak.
Retail prices declined 1.1% Y-O-Yand apartment prices declined 1.5% YOY in May. The industrial index rose 0.5% from a year earlier in May, the ninth consecutive month of slowing annual growth. However, industrial prices remain the only major property sector to have posted positive returns since the onset of the interest rate shocks in mid-2022. By contrast, apartment and retail prices sit 20% and 7% below that same point, respectively
- ◦Sale/Acquisition
