Commercial property prices rose in July, with all major sectors posting annual gains for the second consecutive month, the first such stretch since mid-2022, according to MSCI Real Assets. The RCA CPPI National All-Property Index increased 0.9% from a year earlier and rose 0.6% from June, implying a faster annualized pace of growth of 7.7%.
“Investor sentiment appears to be leaning to cautious optimism in the latter half of the year, as commercial property investment activity improved in the first half of 2025 relative to 2024,” according to the MSCI Real Assets report. “In addition, expectations for the Federal Reserve to make rate cuts later in 2025 could create a more favorable foundation for a potential market rebound.”
Retail once again led all property types in July, posting a 4.2% year-over-year gain. Pricing for retail properties has now increased for 14 consecutive months. Although the Y-O-Y increase for CBD office was comparatively modest at 1.9%, it represents a significant comeback from the 25% decline in pricing for this property type in the year-ago period.
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