According to MSCI Real Assets, commercial property prices experienced a decline in July compared to the previous year, continuing the downward trend that was briefly interrupted in June. The RCA CPPI US National All-Property Index dropped by 1.0% from July 2023.
Despite this decline, prices are still performing better than they were at this time last year when there was a significant decrease of 10.8%. In fact, the index has seen three consecutive monthly increases and saw a slight rise of 0.3% from June.
In terms of individual property types, industrial properties were the only ones with positive annual gains in July as their prices increased by an impressive rate of 9.1%, marking its highest increase in almost two years. However, back in July 2023 industrial properties had experienced a decrease of -0.6%.
On the other hand,the apartment sector did not see any improvement compared to June’s annual price trend and instead saw declines both on an annual basis (-8/4%) and month-over-month (-0/7%). While there had been some signs of decreasing declines towards the end of last year for apartments , over these past four months we have seen an increase once again.
The latest report from RCA CPPI shows that commercial property prices continued their declining trend after experiencing a brief pause in June according to MSCI Real Assets data for July . The overall market recorded a drop by -1%/o Y-O-Y since last summer .
However , it is worth noting that current pricing levels are still performing better than those observed during same period one-year ago which registered double-digit decreases at -10%/o Y-O-Y . Additionally , recent trends show three consecutive monthly increases with modest growth rates ( +03 %) between May-July .
Among different asset classes tracked within this index ; Industrial segment stood out as sole performer showing positive momentum across all metrics : fastest pace ever recorded ( +9.1%/o Y-O-Y) since July 2023 and a slight improvement from last year’s -0.6% decline .
On the other hand , apartment sector was the only one that didn’t exhibit any signs of recovery in terms of annual price trend when compared to June . Prices for this property type dropped by -8.4% on an annual basis and further declined by -0/7 % month-over-month . While there were some indications of easing declines towards end-2023, recent data shows a reversal with four consecutive months recording higher rates of decrease for apartments sector .
