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U.S. CRE Pricing Posts Strongest Annual Gains Since 2022
U.S. commercial property prices in March posted their strongest annual gain since late 2022, with the RCA CPPI US National All Property Index rising 2.1%, MSCI Real Assets said Thursday. On a quarterly basis, the index rose 1.1%, implying a faster annualized pace of growth of 4.7%.
“Commercial property pricing has so far proven resilient against a more uncertain backdrop, with war in the Middle East adding a new layer of caution to the investment environment,” reported MSCI Real Assets. Both transaction volume and pricing improved in the first quarter, reflecting continued investor appetite for select assets.
Suburban office prices rose 5.1% year-over-year, while CBD prices gained 1.4%, with both segments posting their highest annual growth rates since Q1 2022. Apartment prices were flat from a year earlier in Q1, while retail prices declined 1.2%. The industrial index rose 2.3% YOY and remains the only major sector to have posted positive returns since the onset of higher interest rates.
- ◦Sale/Acquisition
