Led by suburban office properties, U.S. commercial property prices moved higher in June, with the RCA CPPI US National All Property Index rising 0.9% from a year earlier, MSCI Real Assets reported. The index gained 0.7% in the second quarter from Q1, implying a faster annualized growth pace of 2.6%.
“Borrowing costs in the U.S. appear anchored at an elevated level, with the Federal Reserve holding its policy rate steady under new chairman Kevin Warsh,” reported MSCI Real Assets. Despite this, office prices continued rising in June, with suburban prices posting annual growth of 3.0%. While CBD office prices rose at the same monthly pace as their suburban counterparts, CBD pricing remains 50% below its March 20922 peak, a sharper drawdown than the 15% gap seen in suburban assets.
Retail prices fell 0.1% from a year earlier in the sixth consecutive monthly decline, reflecting the sharper monthly drops in Q4 2025 more than current conditions. Industrial prices turned negative on an annual basis in June, falling 0.4%, down from a recent peak rate of 7.5% in June 2024.
Apartment prices fell 1.7% in June from a year earlier, the 10th consecutive month of annual declines. The index dropped 1.2% from Q1, a change that annualizes to a more pronounced decline of 4.8%.
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