**Commercial Real Estate Prices Continue Upward Trend in July**
Commercial property prices experienced continued growth in July, with all major sectors reporting year-over-year gains for the second consecutive month—marking the first multi-month stretch of positive annual performance since mid-2022. According to data from MSCI Real Assets, the RCA CPPI National All-Property Index rose by 0.9% annually and 0.6% from June. This suggests an accelerated annualized growth rate of 7.7%.
“Investor sentiment appears to be leaning toward cautious optimism in the latter half of the year, as commercial property investment activity improved in the first half of 2025 compared to 2024,” the MSCI Real Assets report noted. “In addition, expectations for the Federal Reserve to make rate cuts later in 2025 could create a more favorable foundation for a potential market rebound.”
Among property types, the retail sector continued to lead, showing a 4.2% year-over-year increase in July. This marks the 14th consecutive month of growth in retail property pricing. Central Business District (CBD) offices also showed signs of recovery, with prices up 1.9% from the previous year. While this increase is modest relative to retail, it signals a noteworthy rebound from a significant 25% year-over-year decline in CBD office pricing recorded during the same period last year.
The ongoing resilience across commercial real estate sectors offers a promising outlook, especially as market conditions evolve throughout the remainder of the year.
