**Commercial Property Prices Rise in November, but Deal Momentum Slows**
Commercial real estate prices continued their upward trajectory in November, according to the latest data from MSCI Real Assets. The RCA CPPI National All-Property Index recorded a 1.6% increase compared to the same period last year. Despite this annual growth, monthly trends revealed a slowdown, with the overall pricing index showing only a 0.1% gain from October.
Among property types, the industrial sector led the market with a 5.1% year-over-year increase. Retail properties followed with a 2.4% annual gain, though prices dipped slightly—down 0.1%—between October and November. Suburban office assets also saw growth, rising 2.7% year-over-year. However, CBD (central business district) office values declined by 1.9%.
Multifamily assets posted the most notable decline, with apartment prices falling 1.4% compared to the previous year.
“Real estate investors have been cautiously optimistic heading into 2025,” MSCI Real Assets noted. This outlook has been buoyed by a series of expected Federal Reserve rate cuts. While overall deal volume in November was lower than the same month last year, year-to-date investment activity has outpaced 2024 levels. Investors also appear more willing to pay higher prices in select sectors of the commercial property market.
