In November, commercial real estate prices experienced a decrease compared to the previous year, according to MSCI Real Assets. However, the rate of decline has been decreasing and in October there was no change in prices. This is an improvement from earlier this year when prices were dropping by almost 2% each month.
The overall property market has seen a decrease in both sales volume and pricing over the past year as reported by US Capital Trends. The only sector that saw growth was industrial properties with an increase of 1.8% compared to last November.
On the other hand, office properties have seen the largest decline at 14.9%. This can be attributed to uncertainty about future demand for office space and higher mortgage rates according to MSCI Real Assets.
Apartment prices have also decreased by 12.l%, but there has been a slowdown in annual declines since October with only a 0.7% drop recorded since then.
Retail properties have also experienced price decreases with a drop of O3.% from October and O6.% from last year’s levels after reaching record highs in2022.
The current state of CRE pricing shows signs of improvement as we move into late-2023; however, it is important for investors and industry professionals alike not get too comfortable just yet – especially considering recent trends within key sectors such as retail (which began declining at start-of-year after hitting all-time highs during ’22). Despite these challenges though – which include ongoing drops across most segments including apartments (-O.l%), offices (-l4 .9%) & even industrial (though still up +l .8%) – experts remain optimistic about long-term prospects thanks largely due increased stability throughout much broader economy-at-large…
