In September, commercial property prices in the US experienced a decline according to MSCI Real Assets. The RCA CPPI National All-Property Index dropped 1.9% compared to the previous year and 0.3% from August, marking three consecutive monthly declines after a brief pause earlier in the year.
The industrial sector was the only one with positive annual growth in September, with prices increasing by 6.7%, similar to previous months. Compared to August, there was a slight increase of 0.4%.
Apartment prices saw a significant drop of 6.3% from last year but have been gradually improving over the past twelve months according to MSCI Real Assets data.
Office sector prices also declined by 8%, with CBD office properties experiencing an even larger decrease of -22/4%. However, this is still an improvement from last year when both CBD and suburban office properties were seeing declines around -34% and -13%, respectively.
Retail property values fell by just under two percent compared to last year but have remained consistent since May without any major fluctuations or significant decreases like those seen previously.
Overall, it seems that commercial real estate pricing gains have reversed course in September as indicated by Connect CRE’s analysis of MSCI Real Asset’s data for US markets.
