**CRE Pricing Rises Year-Over-Year for Three of Four Major Property Types**
Commercial real estate prices continued to climb in September, with three out of four major property sectors showing annual gains, according to data from MSCI Real Assets. The RCA CPPI US National All-Property Index reported a 2.6% year-over-year increase and a 2.2% rise from the previous quarter. This quarterly uptick represents an annualized pace of growth of 9.0%.
Among the major sectors, the only exception was the multifamily segment. Apartment pricing declined 0.8% from the same period last year and dropped 3.3% from the second quarter. This places multifamily prices approximately 20% below their most recent peak, which was recorded in July 2022.
In contrast, the retail sector led the gains with a 5.5% increase from the prior year. Both central business district (CBD) and suburban office segments also showed solid growth, rising 5.1% and 4.5% year-over-year, respectively. Pricing in the industrial sector followed closely, increasing by 4.0% over the same period.
“Investor sentiment leaned toward cautious optimism in the third quarter of 2025, as investment activity grew at a double-digit pace relative to a year prior,” MSCI Real Assets stated. Deal volume has now risen for six consecutive quarters, and anticipation of additional interest rate cuts from the Federal Reserve is contributing to a more favorable environment for a potential market rebound.
