According to MSCI Real Assets, the decline in U.S. commercial property pricing slowed down in April as the industrial sector showed improvement despite continued weakness in the office market. The RCA CPPI National All-Property Index saw a 2.2% decrease from last year but a slight increase of 0.1% from March.
The report noted that certain property sectors have adapted better to changing financial conditions caused by higher interest rates, with industrial prices experiencing consistent growth while challenges such as tenant demand and reduced deal activity have affected office prices negatively.
Industrial properties recorded an annualized growth rate of 6%, making it the only sector with positive annual growth for another month. In April, industrial prices rose by 0.6%, marking its twelfth consecutive monthly gain.
Meanwhile, CBD office prices continue to see significant declines compared to other sectors, falling by 33.% year-over-year and dropping another % from March figures Suburban offices also experienced decreases at % annually and increased slightly at %.
Apartment pricing was down by .9% on an annual basis but has been slowing down for eight months now according to MSCI Real Assets’ analysis – a stark contrast compared to double-digit declines seen back in November .
Retail properties saw a Y-O-Y decline of .6%. However,the trend is showing signs of improvement as this marks nine consecutive months where the rate of decline has eased up although there was still some drop relative when comparing figures against those reported last month.
In April’s report released by MSCI Real Assets,it was revealed that there has been decelerationinthe paceofdeclineinU.S.commercialpropertypricing.Theindustrialsectorshowedimprovementswhiletheoffice marketcontinuestostruggle.TheRCA CPPINationalAll-PropertyIndexexperienceda2
