Commercial property prices were virtually flat in June from the previous month and declined 0.7% over the past year, according to the RCA CPPI US National All-Property Index from MSCI Real Assets. However,
the annual rate of decline for the index has slowed substantially over the past two years as the market has come to terms with the post-pandemic spike in interest rates.
Retail properties again fared best for price growth in June, rising 3.5% year-over-year although remaining flat compared to May. Industrial, up until recently the best-performing sector, managed 1.6% pricing growth Y-O-Y while continuing to experience increases in monthly growth.
Apartment prices were flat compared to May but posted a slight annual increase of 0.1%. “While not a
substantial gain, it is the first Y-O-Y growth the sector has experienced since the end of 2022,” according to MSCI Real Assets. “Three rounds of rate cuts by the Federal Reserve since September of last year have helped the sector find more stability in pricing.”
Office was the only major property type index to show a decline in prices from last June, down 1.9% on a Y-O-Y basis. CBD and suburban properties both contributed to the drop, falling 4.2% and 2.1%, respectively.
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The post Retail Pricing Fares Best as RCA CPPI Shows Small Y-O-Y Drop appeared first on Connect CRE.
