U.S. Commercial Property Prices See Annual Gain, Led by Retail and Industrial Sectors
U.S. commercial property prices rose in February, driven by strong performance in the retail and industrial sectors, according to MSCI Real Assets. The RCA CPPI National All-Property Index posted a 1.3% year-over-year increase and grew 0.6% from January. When annualized, this monthly uptick implies a potential annualized growth rate of 7.0%.
“The February gain marks a continued shift from the price declines seen in prior years as investor sentiment gradually improves,” MSCI Real Assets reported. “Stabilizing inflation and cautiously optimistic expectations of Federal Reserve rate cuts have reduced market uncertainty, aiding the pricing alignment between buyers and sellers and fostering improved deal activity.”
Among property types, retail led the way with a 4.9% annual increase — a notable turnaround from the previous year, when retail prices were declining at a rate of over 3%. Industrial assets followed closely with a 4.6% year-over-year gain.
These trends signal growing investor confidence and a potential rebound in the commercial real estate market following a period of uncertainty.
