According to the monthly report from MSCI Real Assets, U.S. commercial property prices experienced a decline in May, similar to the rate seen in April. The RCA CPPI National All-Property Index showed a 2.3% decrease compared to last year and a 0.2% drop from April.
In May, different property sectors followed varying pricing trends as stated by MSCI Real Assets’ report: “Stronger fundamentals have resulted in outperformance for certain sectors amidst rising interest rates.”
The industrial sector was the only type of property that saw positive changes both annually and monthly with an increase of 8.7% compared to last year and 0.9% since April; annualizing this growth rate shows an even steeper rise of 11%. On the other hand, office properties led declines once again with a drop of 16/9%, three times higher than suburban properties.
Apartment prices also experienced decreases at -8/9 % Y-O-Y and -1 % month-over-month which equates to an annualized decline of almost12%. Retail saw smaller drops at -1/8 % Y-O-Y and -0 /2 % since April.
This post discusses how U.S CRE prices declined again in May without mentioning specific companies or locations.
