National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
U.S. CRE Pricing Gains Reverse Course in September
Commercial property prices retreated in September, as the RCA CPPI National All-Property Index declined 1.9% from the prior year and 0.3% from August, MSCI Real Assets said Thursday. Although monthly declines had paused around midyear, the index has now posted three consecutive monthly declines.
Industrial was the only property type with a positive annual gain in September. Prices rose 6.7% year-over-year, a rate of increase similar to the prior three months. Compared to August, the industrial index gained 0.4%.
Apartment prices fell 6.3% from a year ago for the second largest drop of any property type. However, MSCI Real Assets noted that the declines for apartment have been gradually moderating
over the past year. In September of 2023, apartment prices were down 13.4% Y-O-Y.
Prices for the office sector dropped 8.0% from a year ago, with CBD office prices down 22.4% and suburban office down 3.3%. Sizable though the declines were, they still represented a significant improvement from a year ago, when CBD and suburban office prices were falling around 34% and 13% Y-O-Y, respectively.
Retail property prices fell 1.5% from a year prior, a rate of decline consistent with the sector’s record since May. The trend for retail prices has recovered from the high single-digit declines of a year ago. Month-over-month, the retail index dipped 0.1%.
- ◦Sale/Acquisition
