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U.S. CRE Prices Post Annual Declines Again in May
MSCI Real Assets said Thursday that U.S. commercial property prices fell again in May, at an annual pace of decline similar to the rate seen in April. The RCA CPPI National All-Property Index dropped 2.3% from a year ago and fell 0.2% from April.
“Property sectors continued on different pricing paths in May,” according to MSCI Real Assets’ monthly report. “Those with stronger fundamentals have outperformed others in the higher interest rate environment.”
Industrial sector was the only property type to post positive annual and monthly change in May, rising 8.7% from a year earlier and 0.9% from April. Using the monthly change to annualize the growth rate shows an even steeper increase of 11.1%.
Office led price declines once again in May, dropping 16.9% year-over-year. Declines for CBD office pricing were nearly three times as steep as those for suburban properties.
Apartment prices dropped 8.9% Y-O-Y and 1% from a month ago, which would equal 11.9% at an annualized rate. In retail, the declines were 1.8% Y-O-Y and 0.2% from April.
- ◦Sale/Acquisition
