In April, the U.S. commercial property market saw a slower decline in pricing compared to previous months, according to MSCI Real Assets. The RCA CPPI National All-Property Index reported a 2.2% decrease from last year but showed a slight increase of 0.1% from March.
Despite ongoing challenges in the office market, improvements in the industrial sector have helped offset some of the overall decline due to rising interest rates and changing financial conditions. MSCI Real Assets noted that industrial prices continue to rise at an annualized rate of 6%, making it the only property sector with positive growth.
On the other hand, CBD office prices continue to see steep declines with a drop of 33.9% year-over-year and 2.% month-over-month while suburban offices also experienced decreases at -7.% annually and +0..5 monthly.
Apartment pricing has also seen improvement as its annual pace of decline has slowed for eight consecutive months after experiencing double-digit drops just two years ago in November . Retail properties saw similar trends with an annual decrease of -26.% but showing signs of easing over recent months despite still seeing monthly declines.
Overall, CRE pricing increased slightly from March led by growth within industrial properties according to MSCI Real Assets’ report on national all-property index data for April .
