**Commercial Property Pricing Sees Annual Growth in January 2025**
Commercial property pricing edged into annual growth in January 2025, with a 0.3% increase in the RCA CPPI National All-Property Index, according to MSCI Real Assets. This marks the third consecutive monthly increase, with prices rising 0.5% from December 2024, indicating a faster annualized growth rate of 6.5%.
“Since U.S. inflation peaked in mid-2022, rising borrowing costs, shifting market dynamics, and evolving tenant preferences have driven uneven price paths across commercial real estate sectors,” noted MSCI Real Assets. “This trend is likely to persist as the market navigates ongoing challenges, including trade tensions and economic uncertainty.”
Among property sectors, the retail index showed the strongest performance, posting a 5.0% annual gain in January. Retail was one of only two property sectors to record annual growth for the month, followed by industrial at 3.4%. For the industrial sector, January marked the seventh consecutive month of slowing annual growth.
